Credit Suisse’s Risky-Bond Wipeout Hurts Asia’s Rich

Credit Suisse's full write-down of its riskiest bonds as part of its takeover by UBS has left wealthy Asian investors with losses on AT1 securities. Private bankers in Asia pushed these bonds from various banks to their clients in recent years, and some investors also used leverage to buy them, expo

April 11, 2023 . 3:28 PM

1 min read

Credit Suisse's write-down of AT1 bonds under its takeover by UBS has left wealthy Asian investors with losses.
Over $17 billion of AT1 securities became worthless, including $1.65 billion sold by Credit Suisse in June 2022.
Many private bankers in Asia pushed AT1 bonds from various banks to their clients in recent years.
Some Asian investors also used leverage to buy AT1s, exposing them to potentially bigger losses if prices declined.
Several international law firms have said they are representing holders of Credit Suisse AT1 securities, indicating that lawsuits are in the works.