UBS mulls first AT1 bonds sale since Credit Suisse takeover - reports

Investors sceptical after $17bn wipe-out

UBS has begun canvassing views from investors over issuing its first Additional Tier 1 (AT1) bond since its takeover of Credit Suisse in March.

Following the release of the bank's quarterly results last month, UBS executives have gone on a roadshow for investors where they proposed changes to the terms of future AT1 bond issuances to make them more agreeable to bondholders, sources told the FT.  According to the reports, UBS is under pressure to replace up to $17bn of Credit Suisse AT1 bonds in coming years in a bid to increase the efficiency of the enlarged bank's capital structure and free up cash for shareholder payouts and possible acquisitions.  What are AT1 bonds and why is Credit Suisse's $17bn wipe-out controversial? ...