Baer’s Charrue Says AT1 Wipeout Hurt Swiss Image: Zurich Forum
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Julius Baer Executive Board member Yves Robert-Charrue said that the shock write-down of Credit Suisse AT1 bonds as part of its takeover by UBS Group AG contributed to the reputational damage for Switzerland’s financial sector.
Holders of the junior debt were wiped out in the emergency deal to save Credit Suisse from collapse in March. Created after the 2008 financial crisis, AT1s are the lowest rung of bank debt, producing juicy returns in good times but taking the first hit when a bank runs into trouble.