Bank bail-in rules put European insurers at risk

The major buyers of bank debt could suffer a domino effect if the bonds are bailed in

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For European insurers, investing in banks is becoming an increasingly risky business.

European Union banks have been issuing more bonds that can be bailed in in a crisis, in order to comply with the revised Bank Recovery and Resolution Directive, likely to come into force early next year. Insurers have been major buyers of this debt despite the growing risk they will lose some or all of their investment if the borrower gets into trouble. For the sector as a whole and for some firms in

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