Banks sell a record amount of riskier debt for the third consecutive year
Not even the sovereign bond crisis in France is slowing down the issuances of European entities. Santander, BBVA, and Unicaja contribute 2.650 billion in CoCos in 2026.
During the past three consecutive years, European banks have set record amounts of high-risk debt, known as CoCos or AT1 bonds, surpassing 40 billion euros in 2026 according to CreditSights. Despite the sovereign debt crisis in France and its contagion across the continent, banks have continued to issue these bonds, which are sensitive to external events.
The CoCos, designed to absorb losses and facilitate recapitalization, have proven to be one of the most sought-after assets in the market, with attractive returns of 6% to 8%. Santander, BBVA, and Unicaja are among the top contributors with 2.650 million euros in CoCos for 2026. Deutsche Bank, UniCredit, Crédit Agricole, Société Générale, and Banco BPM have also joined the market in recent weeks, capitalizing on the demand for these riskier bonds.
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