Key Takeaways:
Credit Suisse was pressured into a merger with UBS, writing down 16 billion Swiss francs ($17.5 billion) of AT1 bonds to zero
AT1 bonds are designed to meet regulatory capital requirements and potentially converted to common equities or written off
The Credit Suisse AT1 bond wipe-out has negatively impacted the market, however, some investment banks are still initiating buy-ins.
The European Central Bank (ECB) reassured limited exposure to Credit Suisse's junior debt, and both EU and UK authorities welcomed the Swiss authorities' actions to ensure stability
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