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AT1 bonds are popular among European banks as a way to build up safety buffers. While AT1s pay high interest to bondholders, their mechanics can make them a risky investment.
The debacle involving Credit Suisse's US$17 billion Additional Tier-1 (AT1) capital instrument has put the asset class in the firing line, threatening to shut the funding avenue and forcing ...
AT1 bonds are popular among European banks as a way to build up safety buffers. Following the 2008 financial crisis, many countries in Europe signed on to a regulatory framework called Basel III, ...
AT1 bonds are also known as “contingent convertibles,” or “CoCos”. They were created in the wake of the 2008 financial crisis as a way for failing banks to absorb losses, making a taxpayer ...
The price of a UBS U.S. dollar AT1, first repayable in 2027, dipped to 68 cents on March 20, the day after the merger roiled the AT1 market, from 88 before and has since recovered to 78 cents.
Investors in the US$250 billion-odd market for AT1 notes may shun new offerings after the Credit Suisse debacle. Banks could be forced to turn to costlier funding avenues, analysts at Fitch and ...
French bank Societe General SA’s $1.25 billion 7.375% AT1 bond is the worst performing security in U.S. corporate bond markets today, dropping 15% to 80 cents on the dollar. The drop is part of ...
Currently, the AT1 bond of a private sector bank is trading at a very high yield of approximately 17%. It looks attractive, may be it is an over-reaction of the market on the risk assessment.
India Business News: The Reserve Bank of India's (RBI) decided to extinguish Additional Tier 1 (AT1) bonds of Yes Bank. The RBI’s decision has also increased uncertainty a ...
It is not the write-down of Credit Suisse’s AT1 bonds that has rocked investors, but the fact that the bank’s shareholders will receive some compensation when bondholders will not.
AT1 bonds are also known as "contingent convertibles," or "CoCos". They were created in the wake of the 2008 financial crisis as a way for failing banks to absorb losses, making a taxpayer-funded ...
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