Credit Suisse Bond-Wipeout Threatens $250 Billion Market

·6 min read
Credit Suisse Bond-Wipeout Threatens $250 Billion Market

Credit Suisse Group emergency merger with UBS Group will wipe out the bank’s riskiest bonds, rattling investors in the quarter-trillion-dollar market for similar bank debt. About 16 billion Swiss francs, or about $17.3 billion, of the bank’s additional tier 1 bonds will be completely written down, Switzerland’s financial regulator, Finma, said in a Sunday statement. Credit Suisse also said it was informed by Finma that the bonds would be “written off to zero.”