, Columnist
Who Is Stuck With Credit Suisse’s Worthless AT1 Bonds?
Big asset managers hold some of the notes. But the owners of the bulk of the $17 billion of these highly risky instruments remain a mystery.
Mystery AT1 owners.
Photographer: Stefan Wermuth/BloombergThis article is for subscribers only.
Credit Suisse Group AG’s junior bond holders are not happy. The UBS Group AG takeover, orchestrated by the Swiss government without the blessings of shareholders on both sides, will trigger a complete write-down of their $17.3 billion worth of Additional Tier 1 notes. Some are considering legal action.
Losses of this magnitude are unsettling to markets already shaken by the latest banking crisis. As such, it is of public interest to ask who are the owners of these risky bonds, introduced after the global financial crisis?