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Wealthy Asians snub bank capital bonds 

September 20, 2013
Christopher Langner, Reuters

* Private banks reduce leverage for bank hybrids

* Fears of fallout in case write-downs are triggered

* Clients turn to corporate perpetuals instead

 Tougher lending policies are threatening to drive Asia's private-banking clients away from bank capital and towards corporate hybrids.

Private bankers said they are reducing the margin loans, or leverage, they make available to buyers of loss-absorbing capital instruments that expose investors to the risk of permanent principal losses.

Read more: Reuters

 
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