Government-supported buyout wipes out $17bn in Credit Suisse bonds

James Baxter-Derrington
clock • 1 min read

Investors in Credit Suisse's additional tier one (AT1) bonds will have their holdings wiped out, as the government-supported takeover of the bank by UBS sees the bond value written down to zero. Revealed yesterday (19 March) as part of the Swiss regulator FINMA's statement approving the merger of the banks, the rewriting of the AT1 bonds took many by surprise. The statement read: "The extraordinary government support will trigger a complete write-down of the nominal value of all AT1 shares of Credit Suisse in the amount of around CHF 16bn, and thus an increase in core capital." UBS...

To continue reading this article...

Join International Investment

Join International Investment today

Unlock members-only benefits:

  • Unlimited access to real-time news, industry insights, video features and market intelligence
  • Stay ahead of the curve with spotlights on international financial centres, regional trends international advice and global industry leaders
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Hear the latest cross jurisdictional developments in wealth planning, tax, regulation, investing, retirement and protection
  • Members-only access to the Editor’s weekly news roundup newsletter
  • Members-only access to analysis via our exclusive industry polls
  • Be the first to hear about our events and awards programmes

Join now


Already a International Investment member?