CDS Panel Says Credit Suisse AT1 Wipeout Won’t Prompt Payout
- Panel sees AT1 bonds as junior to notes underlying the CDS
- The securities had been at the center of a market debate
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A panel tasked with overseeing the credit default swaps market said that the writedown of Credit Suisse Group AG’s Additional Tier 1 notes will not trigger an insurance payout.
The Credit Derivatives Determinations Committee ruled at a meeting on Wednesday that the controversial wipeout of the high-risk bonds won’t lead to a payout of the default swaps tied to the bank’s subordinated debt, according to a notice on its website.