, Columnist
Credit Suisse AT1 Bondholders Find Out Life’s Unfair
Market convention went out the window as parties raced to secure a deal for the embattled Swiss lender.
On your bike.
Photographer: Pascal Mora/BloombergThis article is for subscribers only.
Some of Credit Suisse Group AG’s bond holders are furious with the terms of UBS Group AG’s takeover.
The deal will trigger a complete write-down of Credit Suisse’s 16 billion Swiss francs ($17.3 billion) worth of Additional Tier 1 bonds, as the riskiest notes introduced after the global financial crisis are known. This would mark the biggest loss yet for Europe’s $275 billion AT1 funding market. At the same time, the bank’s stock holders will still get something back — they are set to receive 3 billion francs in an all-share merger.