What happened to credit suisse at1s?
AT1s rank higher than shares in the capital structure of a bank. If a bank runs into trouble, bondholders will rank above shareholders in terms of getting their money back.
In Switzerland, the bonds’ terms state, however, that in a restructuring, the financial watchdog is under no obligation to adhere to the traditional capital structure, which is how bondholders lost out in the Credit Suisse situation.
Credit Suisse AT1 holders, therefore, are the only ones not to receive any kind of compensation. Under the rescue deal, they rank lower than shareholders in the bank, who can at least get UBS’ takeover price of 0.76 Swiss francs ($0.8191) per share.
Who ranks higher?
European regulators said on Monday they would continue to impose losses on shareholders before bondholders.
Separately, the Bank of England also said that Britain…
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