Edmond de Rothschild's Julien de Saussure: AT1's post (Credit Suisse) mortem

A year on from the saga

The AT1 bond segment has been back in favour since the end of 2023, even if the long-term consequences remain uncertain.

On 19 March 2023, the decision to write down CHF 16bn (£14bn) worth of Credit Suisse AT1 instruments was taken by Swiss regulator FINMA as part of the bank's rescue by UBS. Instantly, the CoCo market lost around 7% of its volume at the start of the year and around 13% relative to the sole US$ CoCo market. The future of AT1 bonds one year on from the collapse of Credit Suisse As the event spread to the rest of the AT1 market, the performance of the ICE BofA CoCo index was down 14.3% at market close on 20 March, after hitting a record high of 6% on 3 February 2023...