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Pushing bank AT1s into extinction well before APRA’s 2032 cut-off is of natural concern to many fixed income investors. Roy Keenan, Yarra Capital’s co-head of fixed income, looks at the implications and opportunities.
It’s odd that of the 12 published submissions to APRA’s consultation on hybrids, not one advocated getting rid of them altogether. Is the regulator trying to protect banks and retail investors from themselves, or is it simply “jumping at shadows”?