The collapse of Silicon Valley Bank (SVB) and the subsequent Credit Suisse crisis may have caused panic selling in equity markets over the last couple of weeks, but the impact on structured bonds could be greater and even permanent, says MAPFRE Inversión chief economist Alberto Matellán. The warning centres on the the market for AT1, or contingent convertible capital instruments, (CoCos), as well as other structured fixed income financial instruments. Matellán describes the market as "very dispersed and highly variable". CoCos are a hybrid issue with debt and equity characteristics. T...
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