Most European and Asian banks’ AT1s staged a recovery after trading as much as 15% lower on Monday following the historic $17bn writedown of Credit Suisse’s AT1s. The move followed statements from the UK and EU regulators reassuring market participants that the hierarchy of the bank capital structure will be honored in an insolvency scenario. The BOE said, “AT1 instruments rank ahead of CET1 and behind T2 in the hierarchy. Holders of such instruments should expect to be exposed to losses in resolution or insolvency in the order of their positions in this hierarchy.” Similarly, the European regulators said, “In particular, common equity instruments are the first ones to absorb losses, and only after their full use would Additional Tier 1 be required to be written down. This approach has been consistently applied in past cases and will continue to guide the actions of the SRB and ECB banking supervision in crisis interventions.”

Among the European banks, BBVA led the rally with its 6.5% Perps callable in 2025 up over 9 points to 89.8 cents on the dollar. Moving East, Westpac’s 5% Perp callable in 2027 led the rally, up 6.8 points to 84.46 cents on the dollar. In the tables below, we have listed USD-denominated AT1s from popular European and Asian banks.

European AT1s 21 Mar 23

Asian AT1s 21 Mar 23

 

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