RBS considers £10bn debt buy-back

RBS could buy back £10bn of debt in an attempt to boost its capital strength and its standing with bond investors.

The vast capital restructuring could involve at least £10bn of the bank's £28bn of debt being bought back at a premium to current prices, the Financial Times reports. This would mirror moves by other European banks, most notably Lloyds TSB, which unveiled a £10bn deal as part of a £23.5bn capital restructuring in December last year. RBS is examining which instruments it should make cash tenders for and those to exchange into new coupon-paying paper, hybrid contingent capital notes (CoCos) . The bank needs to maintain a good relationship with bond investors because of large ongoing fun...