It’s official – Canadian investors are more than happy to take the risk of being bailed in on a bank restructuring and they don’t ask to be paid much to do it.
National Bank of Canada is the second bank in a week to go to market with a preferred share issue that comes with the possibility of unlucky owners being part of a bail-in of a troubled bank. And it’s the second bank in a week to upsize its offering significantly. National Bank said Wednesday morning that it was seeking $200-million. Later in the day, the bank raised it to $350-million to meet the heightened demand.