A few days after investors in the Additional Tier 1 bond market were jolted by the wipe out of Credit Suisse Group AG s notes, those holding similar debt in Asia are staring at dozens of securities with call dates this year.
According to Bloomberg, at least 113 AT 1 s have an option to call them back in 2023. About 50 of the securities have a feature that could cause them to be permanently written down, while only 18 have an option that allows holders to convert to equity. Data wasn't available on the rest.
The scrutiny on bonds with impending call dates shows how investors are worried about the stability of the broader market after a shotgun deal to rescue Credit Suisse rendered its AT 1 worthless and sparked huge losses for bank debt on Monday. Even with a rebound for some of the biggest banks in Asia as regulators helped boost confidence, the repercussions will be long-lasting and may spread to other sectors, according to Bloomberg Intelligence.
Read: Call Them CoCos or AT 1 s, Here s Why They Got Zeroed: QuickTake
Five of the Asian issuers have dollar-denominated bonds, totaling more than $6 billion, and callable in the second half of 2023. The rest are in other currencies, ranging from Korean won to Indian rupee.
The table below shows the AT 1 notes with call dates this month.
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