Why Marcus Padley is dead wrong on note issues

Marcus Padley’s writing is often provocative and invariably amusing. But on the current slew of subordinated note issues, he’s advocating a dangerous approach. You can read it in this column. And Padley put forward much the same sentiments on national TV at the weekend. Here is his view: ‘The catch, of course, is that these issues are academically overpriced. Ask any fixed income purist: he will tell you the equity investors who are buying these notes are not pricing in the equity risk and there are better risk reward ratios on offer elsewhere in the fixed-interest arena.’ He continues; ‘But...

Marcus Padley’s writing is often provocative and invariably amusing. But on the current slew of subordinated note issues, he’s advocating a dangerous approach.

You can read it in this column. And Padley put forward much the same sentiments on national TV at the weekend. Here is his view:

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