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Writedown after takeover by UBS enraged holders of risky bonds
Distressed asset investor David Tepper says trust in European debt issuance at stake
The case could prove excruciating for Switzerland
Some of Asia’s largest lenders may pause sales of additional tier 1 bonds after $17bn wipeout at Swiss bank
Risky AT1 debt was popular in the region and a sell-off has sparked margin calls
Single Resolution Board chair adamant Brussels will not take investors in bank debt ‘by surprise’
Controversy around decision has rippled across the wider $260bn AT1 market
Current rout raises awkward questions about how useful these instruments are as capital buffers
ECB raises concerns shareholders were prioritised over investors holding additional tier 1 debt
Also in today’s newsletter, in first interview as chief executive Mars boss warns companies against fleeing ESG issues
Value of risky additional tier 1 debt written down to zero in move that is expected to jolt markets
Swiss lender’s offer to buy back SFr3bn of debt fails to steady prices
A study of five of the largest ETFs finds they accounted for nearly half the daily trade of the bonds they owned in 2022
Overall borrowing costs for eurozone governments have risen sharply in the past year
Investment grade and high-yield funds had combined outflows of $8.3bn in February
Biggest downgrade to junk since April 2020
Apollo and Blackstone among those poised to provide $5.5bn of debt to buyout group for purchase of 50% stake in Cotiviti
Higher borrowing costs have increased the cost of losing prized investment grade status
Leave the bullets at home
Indian group also tells bondholders it is seeking to borrow extra $800mn for renewables arm
Borrowers and lenders in $1.4tn leveraged loan market scrap over fine print of replacing scandal-hit benchmark
Bank lines up alternative benchmark after Chinese property crisis chokes off debt issuance in the sector
The investment vehicles present a worrying systemic vulnerability
Fixed income markets reverse gains since start of year in ‘reality check’ over path of interest rates
Defaults always scare me — are yields worth the risk?
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