BIS paper says reform to AT1 instruments ‘may be necessary’

Actual use of contingent bonds may clash with their original purpose, authors say

Credit Suisse offices

Convertible debt instruments known as “AT1” may need to be redesigned as their actual use in many jurisdictions seems to clash with their original purpose, authors with the Bank for International Settlements say in a new paper.

Rodrigo Coelho, Jatin Taneja and Rastko Vrbaski review the use of AT1 instruments in various jurisdictions. The instruments convert to equity when triggered, and were originally intended as a way of restoring an insolvent bank to a going concern.

But AT1 instruments

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.