Reviving AT1 Bond Market Using Pre-Mortem Strategy: A Potential Way To Recover From Credit Suisse’s Write-Off | Dr. Gayathri Giri writes for ABP Live

The article highlights that the decision to bail-in the AT1 bonds issued by Credit Suisse has created a ripple effect in the $260 billion AT1 bond market. Although AT1 bonds offer high returns, they are considered the riskiest investment due to their vulnerability to losses, when a bank faces potential distress. Conversely, the write-off of AT1 bonds by Credit Suisse has compounded the banking jitters around the world.