The banking sector has long been viewed as a safe haven in
the face of turbulent market conditions. So it is not beyond the realms of reason that, in the search for higher yielding paper, investors’ attention has turned to subordinated bank debt. Investor appetite has meant the sector has seen significant growth in recent years and European new issuance totalled some e40 billion in 2001.
With the added attraction of relative value in bank capital securities vis-à-vis senior unsecured debt, in