Credit Suisse AT1 Perpetual

 An investor bought the AT1 perpetuals issued by Credit Suisse. It offered a coupon of 5%.

His broker told him that, following the forced sale of Credit Suisse to UBS, the Swiss regulator exercised the non viable clause and wrote off these AT1 perpetuals to zero. Currently the value of the AT1 perpetuals is zero and illiquid so cannot be sold.

Shareholders also could not vote on the merger with UBS. They saw the value plunge from $1.86 to $0.72 overnight. It is unprecedented and that’s why there is talks on legal action as stated in the article https://fisca.sg/ArticleDisplay.aspx?ID=1315