Credit Suisse AT1 bond prices tumble towards zero after wipeout

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))

Reuters

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Credit Suisse AT1 bond prices tumble towards zero after wipeout

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