The Different Types of Bonds Issued by Italian Banks: An Overview

Fabrizio Crespi () and Danilo V. Mascia ()
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Fabrizio Crespi: University of Cagliari
Danilo V. Mascia: University of Cagliari

Chapter Chapter 3 in Bank Funding Strategies, 2018, pp 69-91 from Palgrave Macmillan

Abstract: Abstract In this Chapter we provide a description regarding the characteristics of the bonds issued by Italian banks, as well as the rules governing the issuance of debt instruments. By employing data from a comprehensive database including 9,160 outstanding bonds, we show that banks, in Italy, typically issue plain vanilla bonds. Moreover, provided that the majority of bonds are unlisted, we infer that banks in Italy have been historically used to place their debt securities to retail customers directly at their branches. Finally, using real examples of debt securities currently held by retail investors, we illustrate some innovative structures of bank bonds. The complexity behind these structures suggests that retail investors are probably unaware of the implicit risks of the bonds, because they normally tend to buy (upon trust) what the bank proposes.

Keywords: Bank bonds; Bond characteristics; Subordinated bonds (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:pal:pmschp:978-3-319-69413-9_3

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DOI: 10.1007/978-3-319-69413-9_3

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