'Very emotional' Asian AT1 investors look to claw back Swiss losses

Efforts to mount legal challenge come as regulators try to reassure markets

Asian investors in Credit Suisse's AT1 bonds are up in arms that they will have to absorb losses ahead of shareholders in the sale of the troubled bank to UBS. © Reuters

ECHO WONG and KENJI KAWASE, Nikkei staff writers

March 23, 2023 18:42 JST

HONG KONG -- Distraught Asian investors are exploring potential legal challenges to a Swiss decision wiping out $17.5 billion in Credit Suisse bonds as regulators in the region seek to ease concerns about the possibility of a similar rout in Asia.

Swiss authorities rattled global markets at the start of the week by pushing through a sale of Credit Suisse to UBS that rewarded shareholders with $3.25 billion -- but erased the value of Credit Suisse's alternative tier 1 bonds.