Analysis: Future for shock-absorbing bank debt uncertain in Credit Suisse aftermath

  • 📰 Reuters
  • ⏱ Reading Time:
  • 38 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 19%
  • Publisher: 97%

Loans Loans Headlines News

Loans Loans Latest News,Loans Loans Headlines

As the dust settles on a surprise move by Switzerland to write down $17 billion of bonds under Credit Suisse's rescue, the market for debt designed as a shock absorber for banks faces a long haul to regain investor trust

, part of bank capital buffers that insulate taxpayers from funding bail-outs, was rocked by the Swiss authorities' decision on March 19 on Credit Suisse AT1s.after sharp price falls over the last week.

Eric Larsson, managing director at asset manager Alcentra, said the market would become "bifurcated". Well-capitalised banks, he added, will be able to issue AT1s, paying investors the higher returns demanded, while smaller ones "get temporarily, potentially shut out". Concern that banks will be unable to sell AT1 debt has weighed on share prices, with European banking stocks down 13% in March in their biggest monthly drop in two years"The AT1 market is hurting and while it's hurting, you won't see any new issuance," said Mark Holman, partner at TwentyFour Asset Management, noting that current yields were too high for banks to issue at.The average yield on AT1 bonds in Europe has jumped to around 14.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Time to look into MMTLP finra FINRAFRAUD bigger than SVB FTX CreditSuisse FacesOfMMTLP removeFINRAsro ReleaseTheBlueSheets GovRonDeSantis GovAbbott ewarren SECGov DOJPH IRS_CI marcorubio SenateDems SenateGOP

Just let it die in peace

They seized $20,000,000,000 of Russian money teaching everyone in the world a valuable lesson. Don't trust European or US banks.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in LOANS

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

UBS brings back Ermotti as CEO with Credit Suisse deal aheadSwiss bank UBS announced former CEO Sergio Ermotti will lead the company's controversial acquisition of troubled rival Credit Suisse, which restored investor confidence as shares went up.
Source: trtworld - 🏆 101. / 63 Read more »

Credit Suisse whistleblowers say Swiss bank has been helping wealthy Americans dodge U.S. taxes for yearsThe bank notoriously pleaded guilty in 2014 to criminal charges for 'knowingly and willfully' helping U.S. clients hide offshore assets and income from the IRS. 😅 Everyone knows this. Duh!
Source: CNBC - 🏆 12. / 72 Read more »

Sergio Ermotti returns as UBS CEO to steer Credit Suisse takeoverUBS Group AG has rehired Sergio Ermotti as CEO to steer its massive takeover of neighbour Credit Suisse - a surprise move to take advantage of the Swiss banker's experience rebuilding the bank after the global financial crisis. mr wolf (pulp fiction cleaner)
Source: Reuters - 🏆 2. / 97 Read more »

UBS brings back Ermotti to lead Credit Suisse integrationUBS on Wednesday decided it would let a Swiss national guide the integration of its two banking heavyweights.
Source: MarketWatch - 🏆 3. / 97 Read more »