Credit Suisse $17BN AT1 Bonds Write-Off Means $275BN Co-Co Market Faces Collapse - Joe Blogs

[TexasTowelie]

UBS has taken over Credit Suisse at the request of the Swiss Authorities to avoid the BANKRUPTCY of the bank. Credit Suisse was the latest bank to be hit by the current Banking Crisis and as part of the takeover deal $17 BILLION in Additional Tier 1 Bonds were WRITTEN-OFF. This actions Shocked the markets as Equity Holders have received a payout but the Bondholders, who rank ABOVE equity in the Capital Structure, have lost everything. In this video I look at the details of this deal and discuss the implications for the $275 Billion AT1 Bond Market.

Chapters:
0:00 Intro
2:58 AT1 BONDS
7:18 CREDIT SUISSE AT1 BONDS
10:09 AT1 BOND MARKET
12:10 HEDGE FUNDS
13:43 SUMMARY & CONCLUSION

[bucolic_frolic]

1. If it weren't so legal it would be called a Ponzi Scheme! /nt