How does EU move to protect deposits impact bondholders?

Last week, European regulators took another step in their long journey towards a single European banking regime, otherwise known as “banking union”. As a recap, after the global financial crisis, European Union (EU) regulators embarked on a process to integrate the bloc’s banking sector and reduce cross-border differences. By transferring certain aspects of banking regulation from local to EU level, the idea was to encourage harmonisation in the region’s notoriously fragmented industry with the aim of creating larger, more resilient banks whose credit quality would be less tied to that of their...