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)
Copyright (c) 2024 Dow Jones & Company, Inc.