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BFF Bank’s EUR 5.875% Perp has dropped by over 24% since February and by over 16% yesterday to trade at 75.5. The recent sell-off comes after it warned that findings from an ongoing inspection by the Bank of Italy could result in a significant additional past-due credit exposure. This amount is estimated at up to €1.3bn ($1.5bn) after issues were identified in its factoring and lending business. The update comes on the back of Italian prosecutors opening an investigation into alleged false accounting at the specialty lender in mid-February.
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