Though the bank denied the reports, it postponed a planned issue of subordinated bonds with which it was to strengthen its capital.

ECONOMIST: Investors' confidence in banks still looks shaky

For Spanish and Italian banks, the gap in yield between senior and subordinated bonds is far lower than it is it is in other other countries such as Germany, Mr. Fraser said.

WSJ: Riskier Debt Still Beckons After Losses

Even so, financial institutions have sold just two subordinated euro bonds this year.

WSJ: Riskier Debt Still Beckons After Losses

So, sell the subordinated bank bonds that you rode down, then rode back up and in which you now have big, fat juicy profits.

FORBES: U.S. Bank Bonds Could Face An Irish-Style Cram Down

But it's still unclear whether it can impose losses on unsecured debt, such as bonds and subordinated debt.

WSJ: SNS Reaal Is in Talks to Avoid Bailout

Since then, analysts say some investors have concluded that the more the ECB buys of a government's bonds, the more private bondholders will be subordinated.

WSJ: Euro Zone Takes Stock of Crisis-Fighting Arsenal

But a sale would probably leave slim pickings for U.S. holders of Venture's now-defaulted bonds, judging from the market's response to events: Senior subordinated notes in Venture have been trading for as little as 3 cents on the dollar.

FORBES: Magazine Article