UBS to launch new AT1 bonds

[PhilMongoose]

UBS launches first AT1 bonds since Credit Suisse takeover

[Dr.PI]

Some background:

Additional Tier 1 (AT1) bonds

Well I looked a bit more into the matter and it appears that: AT1 bonds can be written off if CET1 capital falls below 7%. It’s not the case here, but that would be a case where AT1 bondholders would get zero while shareholders would still get something AT1 bonds are written off in case of a “viability event”, i.e an intervention of the government because there are serious doubts about its solvency… Well, good thing that i don’t invest in financials. Once again I am reminded that I don’t know…

[Dr.PI]

But probably it’s not so bad.

UBS kann sich vor Nachfrage der neuen AT1-Anleihe kaum retten