Enria: New Legislation Can Help Bolster AT1 Market

February’s sell-off in bank bonds reflected investor concerns about additional Tier 1 (AT1), or contingent convertible bonds, 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 on

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