Risky Credit Suisse Bond Wipeout Upends $275 Billion Market
- Holders of AT1 bonds get nothing as shareholders get billions
- Investors in a key corner of bank-funding market left reeling
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Among the biggest losers in the shotgun sale of Credit Suisse Group AG are investors in the firm’s riskiest bonds, known as AT1s, worth $17 billion.
These money managers are set to be wiped out — potentially sending that $275 billion market for bank funding into a tailspin, while threatening blowback for European policy makers in crisis-fighting mode.