Credit Suisse's Bond Wipeout Sends Shockwaves Through Banking Industry.
The takeover of Credit Suisse by UBS arranged by Swiss regulators has raised concerns for investors in a class of bond popular with European banks. Regulators have said that the value of Credit Suisse's Additional Tier 1 bonds, worth about $17 billion in total, would be written down to zero, setting a frightening precedent for the market of Contingent Convertible bonds, also known as Cocos, which is worth about $250 billion.