Credit Suisse's AT1 bond write-off causes turmoil in bank convertible bond market.
TL;DR Summary
PIMCO lost around $340 million on Credit Suisse's Additional Tier 1 (AT1) bonds that were wiped out by the takeover by UBS, with the American investment manager's overall exposure to the Swiss lender running into billions. Swiss authorities decided to wipe out some $17 billion worth of Credit Suisse's AT1 debt under a deal which saw shareholders receive $3.23 billion. PIMCO's current holdings of Credit Suisse bonds, excluding the AT1 debt, were worth over $4 billion.
- PIMCO lost $340 mln with Credit Suisse AT1 bonds write-off - source Reuters
- European bank CoCos under pressure after Credit Suisse sale to UBS triggers historic loss on specialty bonds MarketWatch
- Asia's regulators say banking system is robust and stable after UBS-Credit Suisse takeover deal CNBC
- Asian Bank Shares Move Higher After U.S., European Rally The Wall Street Journal
- The $275 billion bank convertible bond market thrown into turmoil after Credit Suisse's securities wiped out MarketWatch
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