It is not the first time that the treatment of AT1 bonds in a bank overhaul has caused lots of controversies. A dispute over the write-off of nearly $1 billion of AT1 bonds issued by India’s Yes Bank in March 2020 after the Reserve Bank of India initiated a strict restructuring of th...
AT1 bonds, or Additional Tier 1 bonds, are a type of debt instrument that financial institutions issue to raise capital. These bonds are classified as a form of hybrid security that combines elements of both debt and equity. AT1 bonds are called “Additional Tier 1” because they are part o...
The Credit Suisse situation has been a shock for many market participants, particularly around Additional Tier 1 (AT1) bonds. These are generally understood to be riskier, but investors have been used to debt ranking above equity in moments of market stress like this. ...
You may have heard of Yes Bank AT1 bonds. These are perpetual bonds. When the bank was in trouble RBI via its draft restructuring proposal allowed the cancellation of outstanding AT1 bonds worth Rs. 8,415 crores! The mutual funds which held these had to mark down their value. Various stake...
Interest rate futures are derivative contracts that allow traders to speculate on the movement of interest rates. These futures contracts are based on various interest rate benchmarks, such as government bonds or Treasury bills. Trading interest rate futures on TOS provides traders with opportunities ...
As ever, the most reliable indicator to assess any situation and its prospects, at any point in time, are share prices and fixed-income yields. UBS is no exception and it made headlines recently by issuing AT1 bonds for the first time since the government-...
The complete destruction of the portfolio of contingent convertible/AT1 bondswill undermine investor trust in future issuers and disproportionately increase risk premiums in the bond market. For insurance against imminent default, the CDS (credit default swap) has recently risen to alarmingly high levels...
bonds to anyone and moves on when the "heat" is too great. If one can access the fantasy processes of these individuals, the dynamics of their offenses can be understood. This is not easy to do, but often they engage in writing, taking photographs, or keeping memorabilia, creating data ...
Different packing motifs in the PCM polymorphs are believed to be one of the reasons why they exhibit different physical properties with Form I forming zig-zag shapes via O–H···O=C hydrogen bonds and Form II being organised into parallel sheets and slip planes, which make it easier to ...
If the Central Bank of Oman and Regulatory approvals are not obtained for the proposed AT1 Issue or if it becomes apparent that the bank is not able to finalise the AT1 Issue by 31 March 2015, BankDhofar will consider increasing its regulatory capital by issue of convertible bonds to raise...