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Credit Suisse's $17 bn of risky bonds are now worthless after UBS takeover

The bond wipe out is the biggest loss yet for Europe's $275 billion AT1 market, far eclipsing the only other write-down to date of this type of security

Credit Suisse
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Photo: Bloomberg

Bloomberg
Holders of Credit Suisse Group AG bonds suffered a historic loss when a takeover by UBS Group AG wiped out about 16 billion Swiss francs ($17.3 billion) worth of risky notes.

The deal will trigger a “complete write-down” of the bank’s additional tier 1 bonds in order to increase core capital, Swiss financial regulator FINMA said in a statement on its website. Meanwhile, the bank’s shareholders are set to receive 3 billion francs.

The bond wipe out is the biggest loss yet for Europe’s $275 billion AT1 market, far eclipsing the only other write-down to date of this type of

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First Published: Mar 20 2023 | 7:53 AM IST

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