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Germany's IKB Deutsche Industriebank, rescued twice during the financial crisis, has issued one of the riskiest forms of bonds without any credit rating from the big agencies.IKB's raising of 300 million euros last month, and other similarly successful debt sales, show how many investors are willing to set aside memories of the 2007-08 global shock and its 2010-12 repeat in the eurozone.Subordinated bonds were among the best performing European debt over the past year and the most closely watched index of the lowest-rated bank debt, Bank of America Merrill Lynch's contingent capital index .MERCOCO, has risen strongly since its inception in January 2014 .Eurozone banks last year sold 106 billion euros' ($131 billion) worth of subordinated bonds, known as sub-debt, at an average 4.9 percent yield. This ratio, aimed at cushioning banks against unexpected losses, stood at 13.5 percent on average at the end of 2016 for eurozone banks, versus 3.7 percent in 2007 .For example, back in 2013, Banco Popular Espanol priced the first euro-denominated AT1 bond with a coupon of 11.5 percent.
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