Bank Slump Just a Blip to AT1 Evangelists Doubling Down on Trade
- Investors nursing losses from wipeout see buying opportunity
- Index of riskiest bank bonds has started to recover losses
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It’s been more than three weeks since Mark Lieb, an investor who specializes in junior bank debt, returned to the US from a marketing trip to Europe but he only recently found the time to unpack his bags.
The founder and CEO of Spectrum Asset Management flew home the day before Silicon Valley Bank collapsed, setting off a market slide that culminated in Credit Suisse Group AG’s forced merger with UBS Group AG and the writedown of $17.3 billion of its most junior debt. Although Lieb didn’t hold any of Credit Suisse’s additional tier 1 bonds, the broader selloff caused by that move has sent his biggest fund tumbling 4.8% in the past month, according to data compiled by Bloomberg.