…banking sector restructuring also suggest that keeping senior unsecured bondholders immune from costly bail- outs is politically untenable. This removes the implicit 'cover' that senior bonds holders have enjoyed and has increased speculation that implementation of the bail-in proposals under the EU's Resolution & Recovery Directive (RRD) will be brought fonvard to 2015 from the current 2018 time-frame. • As such, our colleagues in European Credit have examined the implications of changing recovery rate expectations across the bank capital…