ECB supports creation of global standards for AT1 bonds after Credit Suisse wipe-out - reports

Standardisation of contracts

The European Central Bank’s chief supervisor has expressed support for the creation of global standards for the convertible bonds that were wiped out as part of Credit Suisse’s rescue by UBS.

Holders of $17bn of Credit Suisse's AT1 bonds had their holdings wiped out as part of the historic takeover of the bank by UBS earlier this year, a move that had sparked controversy across European debt markets. The decision forced the Bank of England and EU regulators to step in with veiled disagreement to the move by FINMA, the Swiss regulator, in order to stem a potential market rout.  EU regulators express disagreement over AT1 bonds wipe-out by Swiss authorities According to a report by Reuters, ECB chief supervisor Andrea Enria supported for the regulator's decision, given th...