How Finma milked Credit Suisse’s CoCos to close UBS deal

An unusual clause in Swiss AT1 bonds allowed them to be written off, but could others follow suit?

Credit Suisse offices

Credit Suisse’s contingent convertible (CoCo) bonds contained explicit language allowing regulators to write them down without first wiping out shareholders. But questions are still swirling about why the Swiss authorities chose this option when brokering its emergency sale to UBS, and whether other regulators could do the same when dealing with future bank failures.

The Swiss financial regulator Finma announced on Sunday (March 19) that the government support being provided for the deal –

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