A decision that it was not in the public interest for the European Single Resolution Mechanism to be involved in tackling two failed Italian banks has created fresh uncertainty for bond investors, critics warn.
“How this public interest test now works is open to question. If it is highly discretionary, as it might appear now to be, then it doesn’t give bondholders much predictability as to what their position is going to be. It is like rolling the dice or flipping a coin: either you are going t
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