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Credit Suisse's AT1 bond write-off rattles Asian investors

Terms of UBS acquisition of peer could have broader implications for region

The UBS acquisition of Credit Suisse includes the write-off of about 16 billion Swiss francs ($17.2 billion) in AT1 bonds, a decision made by the Swiss Financial Market Supervisory Authority.   © AP

HONG KONG -- The acquisition of Credit Suisse by compatriot UBS has dealt a fresh blow to Asian banks and investors already reeling from the collapse of Silicon Valley Bank in the U.S. earlier this month.

A rescue plan for Credit Suisse engineered by the Swiss financial regulator was announced just hours before the opening of trading in Asia on Monday, followed by a concerted action from six central banks to enhance U.S. dollar liquidity.

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