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0 0 0 0.00143678160919537 0.00143678160919537 -0.00143678160919537 -0.00287356321839074 0.00359195402298856
Stock impact report

UBS Most Reliant on AT1 Bonds Wiped Out in Credit Suisse Deal [BNN Bloomberg (Canada)]

Barclays PLC (BCS) 
Company Research Source: BNN Bloomberg
Additional Tier 1 bonds, or AT1s, are the equivalent of about 28% of the Swiss lender's highest quality regulatory capital, according to Bloomberg calculations. That's just slightly more than for Barclays Plc, while the average exposure among the 16 biggest banks in Europe is about 16%. The notes have been a key way for banks to bolster their financial resources because they are typically cheaper than normal equity such as shares. They were created by European regulators after the financial crisis as a way to impose losses on creditors when banks start to fail without resorting to taxpayer money. “From a capital perspective, if AT1 funding costs rise by an extreme amount over time, we believe there may potentially arise a situation in which banks look to replace AT1 capital with CET1 capital,” Goldman Sachs analysts led by Chris Hallam wrote in a note. A historic writedown of 16 billion francs ($17.2 billion) of the risky bonds issued by Credit Suisse has sent shockwaves throug Show less Read more
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