Italian bank CDS amid senior non-preferred issuance

In our last article of 2017 we noted that it was widely billed as the year of political risk. Perhaps those in the fixed income world will call 2018 the year of TLAC (Total Loss Absorbing Capacity). It doesn’t have quite the same resonance, but there is little doubt that bank credit in both cash and CDS will fundamentally change over the next 12 months.