What are AT1 bank bonds – and why are Credit Suisse’s wiped out?
by Richard Partington from US news | The Guardian on (#6A06G)
Global banking system is under pressure amid row over who should lose out first when a bank struggles
- Nils Pratley: Swiss solve one problem at Credit Suisse, but create another for bondholders
- Comment: Bonds were seen as a safe haven - but they are central to this bank crisis
The global banking system is under renewed pressure after the Swiss government-brokered takeover of Credit Suisse by its larger rival UBS, after the deal wiped out the investment of bondholders who owned about $17bn (14bn) of risky Credit Suisse debt.
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