UBS launches first AT1 bonds since Credit Suisse takeover

Unlock the Editor’s Digest for free

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

UBS is looking to raise its first additional tier 1 bond since $17bn worth of the risky debt instruments were wiped out when it took over rival lender Credit Suisse. 

The Swiss bank launched a deal to raise new dollar AT1 bonds on Wednesday, split between debt that can be redeemed in five years and 10 years. AT1 bonds have a perpetual maturity and are designed to take losses in times of crisis.

Swiss authorities’ decision to write down $17bn of Credit Suisse’s AT1 bonds in March, as a condition of its shotgun marriage to UBS, provoked uproar and has led to a number of litigations. 

UBS is marketing the five-year tranche at about 10 per cent yield and the 10-year at about 10.125 per cent.

This is a developing story