Christine Lagarde, president of the European Central Bank, said in a speech Monday that banks in the eurozone had “a very limited exposure” to Credit Suisse, particularly in relation to AT1 bonds. “We’re not talking billions, we’re talking millions,” she said. The Bank of England...
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....
In the case of Credit Suisse, there was evidence of material weakness in the bank’s cash flow statements. In SVB, the bank put almost all its deposits in long-term US government bonds, making it vulnerable to bank runs, especially when interest rates rose. ...
Mizuho sells ¥261 billion of AT1 bonds after Credit Suisse turmoil 2023/07/20 【Market】(The Japan Times) Nikko asset shifts to bullish yen slant as Ueda bides his time 2023/07/18 【Market】(The Japan Times) An $880 billion fund is shorting Japan’s key bonds in BOJ bet ...