BANCO SANTANDER's €1.5bn 6.25% Additional Tier 1 transaction barely moved last Wednesday after the bank's chief executive appeared to confirm that it would not redeem the bond on its first call date in March. With yields on subordinated bank paper rising sharply over the course of 2018, it has made increasingly less sense - on an economic basis - for issuers to exercise calls, given the higher cost of refinancing with new AT1 bonds.
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