Opinion | Yes Bank’s shadow on the Indian market for AT-1 bonds
These are useful instruments for banks and their market should revive once the risks are better understood
The failure and restructuring of Yes Bank is a highly significant event in many respects. One of the dimensions is its impact on future additional tier 1 (AT-1) bond issues by banks. There is a palpable fear that the AT-1 market will turn inactive. The reason offered is that AT-1 investors will be fearful of losing their entire investment, as has happened in the case of Yes Bank.