What Are AT1 Bonds, and Why Are They Risky?1 min read 24 Mar 2023, 07:06 PM IST
Credit Suisse is just one issuer of AT1 bonds in recent years
Swiss regulators announced on March 19 a wipeout of more than $17 billion of Credit Suisse Group AG’s additional Tier 1 bonds, or AT1s, shocking investors as shareholders were paid out before some bondholders. AT1 bonds deliver higher yields than many comparable assets, which makes them attractive to investors willing to take the risk.
Select your Category