(Bloomberg) -- Banco Popular Espanol SA's riskiest debt tumbled to almost zero cents after Banco Santander SA agreed to buy the troubled lender for a nominal amount. All of Popular's junior bonds will be wiped out as part of the deal, including its additional Tier 1 notes. That marks the first write-off of AT1s industrywide since regulators developed the bonds in the wake of the financial crisis as part of efforts to transfer risk to investors from governments.
To contact the reporter on this story: Tom Beardsworth in London at tbeardsworth@bloomberg.net.
To contact the editors responsible for this story: Abigail Moses at amoses5@bloomberg.net, Neil Denslow
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