In the Headlines
June 6, 2025
Billions of Sub Debt Set to Reprice, Forcing Banks to Explore Options
Bank Director
Financial Services attorney Kevin Houlihan was quoted in an article published by Bank Director about the challenges banks face as billions of dollars in subordinated debt issued during the pandemic approach their rate reset dates. With rising interest rates, banks must evaluate whether to let rates float, issue new debt or call the existing debt – each option carrying significant financial implications. Mr. Houlihan noted that these choices are influenced by multiple elements, including current interest rates and state of the economy, available funding and the bank's growth strategy.
"A bank's decision is going to depend on a number of factors: where interest rates are, where the reset rate is relative to what the new issuance rate is, a bank's view of the economy, its funding sources and its strategic growth considerations," he said.
READ: Billions of Sub Debt Set to Reprice, Forcing Banks to Explore Options
"A bank's decision is going to depend on a number of factors: where interest rates are, where the reset rate is relative to what the new issuance rate is, a bank's view of the economy, its funding sources and its strategic growth considerations," he said.
READ: Billions of Sub Debt Set to Reprice, Forcing Banks to Explore Options