Rollover risks rise for additional tier-I bonds after YES Bank crisis

The additional tier-I (AT-I) bond market, which relies heavily on rollover of bonds, is likely to face challenges in securing rollover funds after the Reserve Bank of India (RBI) proposed write-down of YES Bank's bonds. 

According to a note by ICRA, the RBI move can have negative repercussions for the entire AT-1 bond market, which currently stands at around Rs 93,669 crore. Most of these bonds were issued in FY17 and FY18 with call dates after five years. 

 

 

These are due for calls in FY22 and FY23.