CDS committee accepts to hear question on Credit Suisse AT1 bonds
2023.05.12 16:45
© Reuters. FILE PHOTO: A logo is pictured on the Credit Suisse bank in Geneva, Switzerland, March 15, 2023. REUTERS/Denis Balibouse/File Photo
NEW YORK (Reuters) – The Credit Derivatives Determinations Committee (DC) accepted on Friday to look into a question on whether a “governmental intervention credit event” occurred with respect to Credit Suisse.
The DC overlooking Europe will have to determine specifics of the subordination of Credit Suisse’s additional tier-1 (AT1) bonds, according to the DC website.
As part of its takeover by UBS Group AG (SIX:), the Swiss regulator decided Credit Suisse’s AT1 bonds, with a notional value of $17 billion, would be valued at zero, in a move that angered some holders of the debt.
Questions to the DC are typically raised in the process to determine whether a certain event will trigger payment of default insurance known as credit default swaps.
