It's Crunch Time for Monte Paschi

Bloomberg Video

Nov.24 -- Banca Monte dei Paschi di Siena SpA says it expects holders of junior bonds to swap about a quarter of available notes for equity in the first crucial stage of its 5 billion-euro ($5.3 billion) rescue plan. Investors are expected to exchange 1.04 billion euros of the 4.3 billion euros of available notes as of Nov. 21, according to a document published on its website at the request of Consob, the financial regulator. Italy’s third-largest bank needs bondholders to agree to exchange their bonds for equity so a subsequent share sale can go ahead, it said last week. Hermes Fund Managers Senior Credit Analyst Filippo Alloatti discusses with Guy Johnson in London and Matt Miller in Frankfurt on "Bloomberg Markets: European Open."