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

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

20230320 logos of the Swiss banks Credit Suisse and UBS in Zurich

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

KENJI KAWASE and ECHO WONG, Nikkei staff writers

March 20, 2023 23:55 JST

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.