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Investors flee risky European bank debt

Contingent convertible bonds, or CoCos, have declined about 12 cents on the dollar in 2016 as the sell-off in European lenders spreads

Investors flee risky European bank debt
Photo: iStockPhoto

The sell-off in European lenders is spreading to a risky type of bank debt.

The debt pays high interest rates, and European banks looking to boost their capital levels once sold it in huge quantities to eager investors. But now with banks' prospects dimming, investors are fast souring on the bonds.

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