Santander's offer to junior debt holders under fire

Santander's offer to buy back junior debt from bondholders has drawn criticism from analysts who accused the Spanish bank of trying to lock in a profit at the expense of investors.

Analysts at Societe General said Santander's offer to exchange a selection of lower Tier 2 bonds worth €6.8bn (£5.8bn) for more senior debt was not "compelling" and inexplicable given the lender's stated financial strength, the Telegraph reports. "Santander's credit position remains one of the strongest in our credit universe, in spite of Spanish sovereign worries, and broader macroeconomic concerns in the Eurozone. "As such, we see no benefit for investors of being put in a more senior position at a bank where bail-in risk appears to be remote today. However, there may be other bad n...