Credit Suisse's Loss Triggers Turmoil in Bank Bonds and Forex Markets.

The sale of Credit Suisse to UBS has triggered a historic write-down of specialty bonds, including CoCos or additional Tier 1 (AT1) bonds, issued by several European banks. Regulators wrote down the value of Credit Suisse's US-dollar denominated CoCo debt to zero, causing turmoil in the $275 billion market for European convertible bank bonds. Barclays, Deutsche Bank, and HSBC's CoCos were among the hardest hit in New York trade. Investors remain on edge about potential additional fallout in the banking system after several midsize US banks failed, and after a big liquidity injection for Credit Suisse from the Swiss central bank last week failed to calm nerves.