Untoped banks find the demand for risky AT1 bonds | Einsmark news

(Bloomberg) – Investors are so eager to buy the risky bank debt that their securities even shell out to unproven borrowers. A British bank rescued from the collapse less than two years ago is a lender to small businesses and an online loan provider under a part of firms selling their first additional level 1 bonds this year. In general, 2025 in a long time forms the busiest year for debut, with eight new issuers so far. The largest and safest agreement by a newcomer, from Greek money shooter Eurobank Ergasias Services and Holdings SA, delivered an order of € 4 billion ($ 4.5 billion) for a € 500 million sales. New entrants, including Metro Bank Holdings PLC, UTB Partners PLC and Zopa Group Ltd., flock to AT1s because it is a cheaper way to raise capital as fairness, given a background of close distributions and the volatility of the stock market that is unleashed by US President Donald Trump. And investors are eager to place cash to work in higher returns seen as relatively isolated from tariff unrest. A Metro Bank spokeswoman said the company’s issue of AT1 Securities supported its growth strategy by facilitating more lending. Representatives of UTB and Eurobank did not respond to requests for comment. Luca Evangelisti, Investment Manager and Credit Research at Jupiter Asset Management, said: “Tighter distributions and a relatively high cost of equity are why AT1s are elected. Smaller banks may also make the best of the current window if the distribution is expanded again, he said. Lenders are not obliged to include this layer, and can only use shares to meet capital requirements. Lenders have risen sales lately. Mutuel Asset Management. To be sure, investors want compensation for the higher risk compared to established AT1 issuers. Institution ‘tone. Week in review on the move more stories like these are available on Bloomberg.com © 2025 Bloomberg MP