French Banks Bail-in-able Capital Instruments Valuation with Credit Institutions System Pandemic Crisis Framework

Since inaugural issuances, the Senior Non Preferred market prices showed wide volatility, highlighting the investors’ difficulty to price the additional risk of these instruments.

Le 11/07/2019
Hugo Lepage
The 2007 financial crisis resulting in both the disorderly liquidation of a “too big to fail” institution, namely Lehman Brothers, and the huge use of tax-payer resources required to stabilize the worldwide financial system raised two questions for the regulators. First, how to prevent the tax-payer to bear the cost of credit institutions recapitalization ? Second, how to clear credit institutions capital instrument’s pricing from any bail-out prospects ?A new resolution framework introducing a new “bail-in eligible” instrumentsTo answer these challenges, a new European resolution ...
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  • Hugo Lepage, Alumni ESCP Europe
    • Alumni
      ESCP Europe
    • CMO Graduate Programme Analyst


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