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AT1 bonds and Credit Suisse: 4 things to know

$17bn write-off comes under scrutiny as part of UBS deal

Swiss authorities orchestrated the historic weekend deal to merge Credit Suisse with UBS.   © Reuters

TOKYO -- The historic deal to save Credit Suisse by selling it to UBS has proved a test of the bank capital reforms put in place after the global financial crisis. One safeguard in particular is now under scrutiny.

Additional Tier 1 (AT1) bonds are designed to absorb losses. While this much is certain, the order in which they have been wiped out at Credit Suisse has become a point of controversy.

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