Market Highlights

The market for Additional Tier 1 bonds has become so overheated that one of the world’s top holders of the risky bank debt is considering pulling back. Algebris Investments, which holds about 􀉲12billion ($14 billion) AT1s within its Financial Credit Fund, has been skipping a number of new offerings as it sees little juice at current spreads. In some cases, the asset manager might look to replace existing issues that are being repaid with safer types of debt like Tier 2 bonds and senior debt. Stock-index futures for the US and Europe advanced as progress in several trade negotiations boosted sentiment.