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AT1 bonds are high-yielding bonds with characters of equity shares sold by banks to raise capital. These are designed to help banks meet funding needs in times of stress without reaching out to the government. These are contingent bonds in a sense that they could be converted into equity when the capital level of a bank falls below a specified threshold.
AT1 bonds are high-yielding bonds with characters of equity shares sold by banks to raise capital. These are designed to help banks meet funding needs in times of stress without reaching out to the government. These are contingent bonds in a sense that they could be converted into equity when the capital level of a bank falls below a specified threshold.