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Tlac-eligible debt: Who holds it? A view from the euro area

Carmela Aurora Attinà, Pierluigi Bologna
December 2021 - n. 12
Keywords: Bail-in, Tlac, resolution, G-Sib, Covid-19
Jel codes: E44, G11, G21, G23, G28, G5

We analyse the issuance of Tlac eligible bonds by the eight euro area Globally systemic banks (G-Sibs) between 2013 and 2020. Leveraging on the Ecb Securities Holdings Statistics database, we describe the characteristics and dynamics of issuances and holdings, looking at the composition of the investor base in terms of sector and nationality, its concentration and how it changed over time. The period covered by the analysis includes both the introduction of the category of senior non-preferred bonds and the outbreak of the Covid-19 pandemic. We estimate that about 78% of the Tlac debt is held by investors outside the euro area. The market tensions that occurred with the Covid-19 shock seem to have not affected investments in Tlac debt, except for those by households which fell in the first half of 2020.

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