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Coco Bonds

All articles tagged with #coco bonds

finance2 years ago•1 min saved

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.

via MarketWatch|

#at1-bondholders #coco-bonds #credit-suisse

finance2 years ago•0 min saved

The Costly Collapse of Credit Suisse's Bonds.

Credit Suisse's $17 billion worth of "CoCo" bonds, designed to give banks a financial cushion in the event of a severe setback, were marked down to zero as part of the bank's acquisition by Swiss rival UBS, engineered by the Swiss government to prevent a financial crisis. The move has angered bondholders, who regarded the bonds as extremely risky investments, while Credit Suisse shareholders received shares in UBS.

via The Washington Post|

#coco-bonds #credit-suisse #finance