Fidelity Buys Europe AT1s After Credit Suisse Leaves Opportunity
- There was ‘indiscriminate’ selling after CS: Efstathopoulos
- Fund sees emerging market local currency bonds outperforming
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Fidelity International favors contingent convertible bonds sold by European banks after Credit Suisse Group AG’s collapse spurred a stampede out of the $250 billion plus market.
CoCos, also known as additional tier 1 securities, suffered “indiscriminate” selling after the debt issued by Credit Suisse was written down following the terms of its government-led rescue, according George Efstathopoulos, a money manager in Singapore. That presented an opportunity to buy beaten-up notes from issuers governed by jurisdictions outside of Switzerland, he said.