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Coco Bonds

All articles tagged with #coco bonds

Credit Suisse CoCo bond losses hit Pimco and Invesco hard.

Originally Published 2 years ago — by MarketWatch

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.

business finance at1-bondholders coco-bonds credit-suisse finance invesco pimco

The Costly Collapse of Credit Suisse's Bonds.

Originally Published 2 years ago — by The Washington Post

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.

business finance coco-bonds credit-suisse finance financial-crisis swiss-government ubs