Credit Suisse AT1s take a beating after Archegos collapse

By Tyler Davies
31 Mar 2021

Subordinated debt investors are scrambling to understand what the collapse of US hedge fund Archegos will mean for Credit Suisse. A heavy loss would undermine the bank’s capital cushion, which protects its additional tier one coupons.

Market participants think Credit Suisse has the most exposure to Archegos, which defaulted on margin calls from a series of investment banks in March.

The Swiss financial institution put out a statement on Tuesday warning that it could suffer a “highly significant and material” loss because of its transactions ...

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