The Globe and Mail reports in its Thursday edition investors who leaped into Basel-compliant bonds issued by Canadian banks are likely regretting their haste. A Bloomberg dispatch to The Globe says a year on, the reward for taking on the risk of bailing out a bank has become much richer. Relative yields of the bonds have widened 25 basis points this year, the worst performance among Canadian five-year corporate bonds, according to RBC Capital Markets research. The debt is designed to convert to equity if a bank gets into financial distress, in line with new Basel rules to prevent another financial crisis. The first issue of the debt, called contingent capital bonds, in Canada was by Royal Bank of Canada in July, 2014. Trading in the bonds suggests banks will have to pay fatter yields to attract investors to a market that BMO estimates could eventually reach $25-billion to $30-billion. The notes would be converted to equity if Canada's bank regulator declares they are needed to keep a bank afloat, or if the bank is forced to seek government aid to keep operating. The first non-viability contingent capital note to hit the market a year ago is trading at its widest gap to government peers since its issuance.