Basel III proposals could put off bond investors

Regulations to increase loss absorbency across the capital structure could deter bond investors from purchasing bank debt, analysts said at CreditSights’ annual conference yesterday.

basel-hq
The Basel Committee headquarters

Basel III capital rules could significantly deplete the investor base for bank debt, said analysts at research firm CreditSights’ annual conference in London on September 23.

Proposals by the Basel Committee on Banking Supervision, aimed at decreasing systemic risk across financial institutions, could deter debt investors from the sector.

“It is going to be quite tricky to find new investors,” said senior analyst David Marshall.

In particular, the push to increase loss absorbency across the

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