Credit Suisse CoCo bond losses hit Pimco and Invesco hard.
Pimco and Invesco are among the largest AT1 bondholders in Credit Suisse, with over $1.1 billion of investment in the risky bonds written down to zero by Swiss regulator Finma as part of the merger with UBS. The news shocked investors of the $275 billion AT1 bond market, triggering a sell-off in other European bank debt. AT1 bondholders are preparing to fight back on Finma’s move.