No-call fear rocks Santander AT1

摘要

The yield on a €1.5bn banco santander Additional Tier 1 has sky-rocketed as the market increasingly prices in the chance of the bank not calling the bond at the first opportunity next year. Extension risk - the possibility that a borrower may leave a callable issue outstanding - has come into focus as the initial batch of AT1 deals approach their first call dates and a market sell-off potentially leaves them too expensive to refinance.