UBS-Credit Suisse merger leads to $17 billion AT1 bond wipeout

The deal exposes the risks associated with the high yield securities and is likely to make bank borrowing through bonds more expensive in the short term.

Sara Velezmoro

March 21, 2023

UBS’ Credit Suisse takeover will lead to the write-off of CHF16 billion ($17.24 billion) worth of Additional Tier 1 (AT1) bonds, following a call on Sunday by Swiss authorities to override the traditional loss-absorbing hierarchy.

Sign In to Your Account To Access Exclusive FinanceAsia Content!

Please sign in to your subscription to unlock full access to our premium FA resources.

Free Registration & 7-Day Trial
Register now to enjoy a 7-day free trial - no registration fees required. Click the link to get started.

Note: This free trial is a one-time offer.

Questions?
If you have any enquiries or would like a quote for a team or company licence, please contact us at [email protected]. Our subscription team will be happy to assist you.