Riskiest Bank Bonds Rise as Regulators’ Assurances Resonate
- Commerzbank, HSBC and UniCredit are among banks leading gains
- Citigroup still sees a future for AT1 market after record loss
This article is for subscribers only.
Banks’ riskiest bonds advanced globally on Tuesday after panic subsided, and investors heeded regulators’ assurances that the wipeout in Credit Suisse Group AG’s Additional Tier 1 notes wouldn’t happen in their jurisdictions under similar circumstances.
AT1 from banks including Commerzbank AG, HSBC Holdings Plc and UniCredit SpA were among leading gainers following a recovery in Asia, where bonds including those from Westpac Banking Corp. were quoted higher. The notes have only recovered some of their losses. Perceived credit risk across the regions also fell.