off-the-wire

Credit Suisse AT1 bond prices tumble towards zero after wipeout

Kitco Media
By Reuters
Published:
Updated:
Reuters
March 20 (Reuters) - Credit Suisse's Additional Tier 1 bonds were bid as low as 1 cent on the dollar on Monday after the bank said 16 billion Swiss francs worth of the debt will be written down to zero. The debt is being written down on the orders of the Swiss regulator as part of its rescue merger with UBS (UBSG.S), it was announced on Sunday, angering bondholders.


A $1 billion AT1 bond with a coupon of 4.5% was bid as low as 1 cent on the dollar, Tradeweb pricing showed.


Other AT1 dollar-denominated bonds were quoted with bid prices ranging from 2 to 29 cents, according to Tradeweb. (Reporting by Yoruk Bahceli, editing by Karin Strohecker)

Messaging: yoruk.bahceli@thomsonreuters.com))
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.