- UBS's purchase of Credit Suisse is causing turmoil in the $275bn Additional-Tier 1 bond market.
- Credit Suisse wrote down around SFr16bn ($17bn) in Additional-Tier 1 (at1) bonds, causing fury among investors.
- At1 securities are a form of 'contingent-convertible' (coco) bonds, created after the global financial crisis.
- Credit Suisse's debt-issuance documents seem to allow for stockholders coming out on top, contrary to many buyers' understanding.
- The future of the asset class is uncertain, with some commentators suggesting the end of the coco market.
Credit Suisse’s takeover causes turmoil in a $275bn bond market
UBS's purchase of Credit Suisse has caused turmoil in the $275bn Additional-Tier 1 bond market, with the future of the coco asset class uncertain.