Santander CoCos Surge as New Bond Sale Fuels Buyback Hopes
- Investors waiting to see if bank will call outstanding AT1s
- Earnings last week beat expectations, while core capital rose
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Banco Santander SA’s contingent-convertible securities jumped as a new dollar sale stoked speculation that the Spanish lender will buy back older notes.
The 6.25 percent euro CoCos, first callable next month, surged as much as two cents, putting them close to par. The notes had traded below face value on concerns that Santander would decide to extend the bonds rather than replacing them with new additional Tier 1 notes. Other Santander CoCos also gained.