Is that true for individual investors?I am soooo glad I didn’t hang on to a Credit Suisse bond I bought last year! It looks like they are writing them off to zero.
Is that true for individual investors?
Is that true for individual investors?
It’s for a special type of bond called AT1 bonds. I can’t confirm that’s what I had, but the description sounded like it.
There’s a similar discussion going on in the “Golden Period” thread if you want to check it out.
Yes, these were COCO bonds. Info here.Is that true for individual investors?
Not true, as mentioned in the article link.You didn't have AT1s. They are only available to other banks, funds, and other whales only.
It’s for a special type of bond called AT1 bonds. I can’t confirm that’s what I had, but the description sounded like it.
There’s a similar discussion going on in the “Golden Period” thread if you want to check it out.
You didn't have AT1s. They are only available to other banks, funds, and other whales only.
Apparently I'm wrong, but I did not think something as sophisticated as hybrid AT1 bonds, intentionally "designed as a part of total loss-absorbing capacity (TLAC) bonds to provide a 'bail-in' or a way for banks to transfer risks to investors" would be something that would show up on Fidelity's bond search tool for retail investors.Are you saying Dash man is a minnow and not a whale?
Are you saying Dash man is a minnow and not a whale?
Funny!My scale would say otherwise! [emoji23]
Maybe it displays better in the telegram app but I couldn't read any of it.For your amusement/concern, biggest holders of CS AT1 "Bonds"
https://t.me/tradingrumors/50508
Maybe it displays better in the telegram app but I couldn't read any of it.
I did read a couple of articles last night that suggested several items, the biggest of which was the insurance and pension fund exposure to AT1s. All of the institutions were already taking hits in the NBV of their treasuries after rates rose, but they supposedly have significant exposure to AT1s which are suddenly unloved. The gist of the article was "buckle up. the default+bailout ride is just getting started".
If you want more details here are the list of AT1 notes that were reset to zero.
https://www.credit-suisse.com/about...gulatory-disclosures/capital-instruments.html
If you want to know who are the owners, use the ISIN number on the right hand side and Google: fintel <ISIN Number>
For example:
fintel US225401AS71
Gives you:
https://fintel.io/so/ch/225401as7
and so on...
https://fintel.io/so/ch/225401ar9
https://fintel.io/so/ch/225401al2
What you will find is preferred funds, bond funds, and insurance trusts are the owners but they lost "other peoples money" not their own.
The fallout from the Credit Suisse deal “changes the whole nature of the [AT1] market, and I think the ability to issue going forward is probably close to zero”, said Greg Peters, co-chief investment officer of PGIM Fixed Income. “Basically, it’s a zombie market going forward in my mind.”
New AT-1 issuance is pretty much dead for now. No one is going to buy these bonds after the Swiss debacle.
Credit Suisse fallout threatens to halt issuance of risky bank debt
https://www.ft.com/content/3f405e6d-d4a3-46f1-82ba-3ec9cf4f7054
As the old adage goes, “People should be more concerned with the return OF their principal than the return ON their principal.”
Freedom, thanks for posting this. One of the issues for us "little guys" who were never or are no longer in the business is access to heavy duty research tools (like a Bloomberg terminal). A lot of it is out there, we just don't know how to find it.
The resources provided in this thread and others is a great thing about ER.org.