Barclays Contingent Notes Fall on Short Selling Speculation
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Barclays Plc’s $3 billion of new contingent capital notes, securities designed to ensure taxpayers aren’t forced to pay for banks’ errors, fell for a second day.
The 7.625 percent subordinated 10-year notes were priced at face value and have dropped 2 cents on the dollar to 98 since being priced two days ago, according to Jefferies International Ltd. The notes will be written down to zero if the U.K.’s second-largest lender has losses that reduce its core Tier 1 equity ratio to 7 percent or lower.