Market Review and Trends
Top News this Week (26 Mar)
By Financial Horse  •  March 26, 2023
Rounding up top investing articles from around the web, including articles shared on Twitter.

Credit Suisse bought over by UBS: AT1 Bondholders wiped out – Will this trigger systemic risk? (FH)

There are two points with the “bailout” that are very concerning:
  1. AT1 Bondholders (CoCo) wiped out ahead of equity holders – this will trigger repricing of AT1s across the board
  2. The speed of the deal is astounding – how bad was the run on Credit Suisse last week?

Asia banks may face difficulty bolstering capital via AT1s – Citi (CNA)

Asian lenders may find it difficult to replenish their capital by issuing Additional Tier-1 (AT1) bonds, Citigroup said in a research note on Wednesday, after the Swiss authorities’ move to wipe out Credit Suisse bonds as part of its takeover deal. The challenge will be particularly acute for a large number of smaller banks in Asia more reliant on AT1s compared with Western peers due to tighter regulatory liquidity requirements....
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By Financial Horse
Financial Horse was founded with a simple goal – To provide high quality financial commentary, in plain English. He is a firm believer in Einstein’s quote that “If you can’t explain it to six-year-old, you don’t understand it yourself.” Too much of finance is shrouded in complex jargon, and Financial Horse aims to demystify financial investments.
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