Italian banks take the long road

They were extendible

They were extendible

How extendible notes work

Despite the attractive economic rationale for issuing short-dated transactions, not all jurisdictions have fully embraced them. One noteworthy aspect of the credit dislocation has been the absence of any noise about the Italian banking system. A regular feature of the credit spread widening was for Italian credit to be among the first to suffer. But this time things have been different. Italian banks are little mentioned as a possible cause for concern.

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