Barclays Plc's $3 billion of new contingent capital notes,securities designed to ensure taxpayers aren't forced to pay forbanks' errors, fell for a second day.

The 7.625 percent subordinated 10-year notes were priced at facevalue and have dropped 1.55 cents on the dollar to 98.45 since thesale closed two days ago, according to Jefferies International Ltd.The notes will be written down to zero if the U.K.'s second-largestlender has losses that reduce its core Tier 1 equity ratio to 7percent or lower.

The securities were marketed globally and attracted orders ofmore than $17 billion, with most coming from Asia, Mark Harmer, thehead of developed markets credit research at ING Groep NV inAmsterdam, said in a client note. Its size and relatively highprice leaves it vulnerable to short sellers, according to PaulSmillie, a Singapore-based bank credit analyst for ThreadneedleAsset Management.