AT1 bondholders have a legitimate expectation that their investment ranks above in priority of equity investors, and so naturally the decision to write down AT1 bonds to zero while having equity investors receive payouts as part of the UBS takeover has left many investors frustrated and confused.
The banking crisis from across the world is unfolding rapidly, with the latest milestone being the dramatic decision to write down millions from Credit Suisse AT1 bonds. Withers has a global team to support clients affected by the AT1 bond crisis and we share some key takeaways from the latest developments.
Confusion around the bond's identity
