Swiss Court Reinstates $17B Credit Suisse AT1 Bonds, Reviving Investor Hopes
A Swiss court has overturned the controversial 2023 decision that erased $17 billion in Credit Suisse AT1 bonds—the same instruments declared worthless during UBS's government-brokered takeover. Bondholders, once blindsided, now see a path to recovery. The ruling nullifies Finma's original wipeout order, though the regulator vows to appeal.
Investors draw parallels to Lehman Brothers' post-2008 resolution, where creditors eventually recovered full value plus interest. Two anonymous AT1 holders confirm they're preparing for prolonged litigation, emboldened by the court's precedent. Market observers note the decision could recalibrate risk perceptions in contingent convertible bonds—a segment crypto investors often monitor for traditional finance spillover effects.
