Enria: new legislation can help bolster AT1 market

The EBA is also reconsidering its advice to the European Commission on the treatment of CVA risk

eba-andrea-enria-new-credit-eba
Andrea Enria: defends the viability of AT1 instruments to absorb losses in a bank bail-in

February's sell-off in bank bonds reflected investor concerns about additional Tier 1 (AT1), or contingent convertible bonds (CoCos), raising questions as to whether CoCos, with their equity-like characteristics, need to be redesigned.

Deutsche Bank was forced to confirm it had enough reserves to pay interest on its AT1 securities, as investors worried that under German and European law, payouts on the bonds, which are tied to capital requirements, would be prevented.

Market participants called

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here