Italian bank UniCredit’s call for $10.3 billion in new capital has worsened its debt risk profile and, compared to peer Intesa Sanpaolo, it could deteriorate further, says Vincenzo Albano of Reuters.

“High yields, in fact, are reacting differently,” Albano says, “in particular the contrast between the two Italian issuers is evident. Intesa yield curve is normally shaped, but considerably more expensive than UniCredit curve in the medium term. … [T]he six-year is the wider point, currently even wider than its moving average.”

This entry was posted on Tuesday, November 15th, 2011 at 3:58 pm and is filed under Credit, Reuters Insider video. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.