Banco BPM's Credit Spreads Likely to Tighten If Acquisition by UniCredit Succeeds -- Market Talk

Dow Jones
2024/11/25

1525 GMT - The proposed acquisition of Italian bank Banco BPM by UniCredit could cause Banco's credit spreads to tighten, ING strategist Suvi Platerink Kosonen says in a note. "If the deal were to go through the Banco BPM AT1 [additional tier 1] curve would outperform against UniCredit," she says. The risk premium--or spread--on Banco BPM's additional tier 1 bonds is wider than on UniCredit AT1 bonds, ING says. Additional tier 1 bonds are risky debt issued by banks and act as a buffer if a bank's capital falls below a set threshold. (miriam.mukuru@wsj.com)

 

(END) Dow Jones Newswires

November 25, 2024 10:25 ET (15:25 GMT)

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