Investors are going loco for CoCos
Thanks to miserable yields in stocks, AT1 bonds have gone from death-blow to go-go
In a distant and forgotten era, around eight months ago, tremors were rippling through the global banking system. Three mid-sized American lenders collapsed in a week. In Europe the venerable Credit Suisse almost went under, before being bought by its rival, UBS. The scramble to merge them threw a cloud over an entire class of bank debt, $1trn of which has been issued over the past decade.
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This article appeared in the Finance & economics section of the print edition under the headline “Loco for CoCos”
Finance & economics November 25th 2023
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From the November 25th 2023 edition
Discover stories from this section and more in the list of contents
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The great-man theory of Wall Street
Why finance is still dominated by bold individuals
Hong Kong’s property slump may be terminal
Demographics and geopolitics will make a recovery harder
Why everyone wants to lend to weak companies
An unanticipated side-effect of Donald Trump’s election victory
American veterans now receive absurdly generous benefits
An enormous rise in disability payments may complicate debt-reduction efforts
Why Black Friday sales grow more annoying every year
Nobody is to blame. Everyone suffers
Trump wastes no time in reigniting trade wars
Canada and Mexico look likely to suffer