Comments by "seneca983" (@seneca983) on "The End of Credit Suisse" video.

  1. That's basically how these particular bonds were structured. If they were senior to equity holders they wouldn't count as Tier 1 capital under Basel III rules. (Though I obviously haven't read the contracts for these specific bonds so I don't know if the Swiss regulator's decision falls within the stipulations of the contract.)
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  2.  @davidglad  "Stockholders getting paid ahead of ANY bondholders is unprecedented other than outright looting." No, these bonds are different. The contracts for these types of bonds contain stipulations that they can be wiped out or converted to stock based on certain events like the bank's core capital being eroded below certain limit or a decision by a regulator. They are not senior to equity holders. That's their whole purpose. Otherwise they wouldn't count as Tier 1 capital under Basel III rules.
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  3.  @danielcarrapa3632  I don't think that's right. There are different kinds of AT1 bonds. Some get converted to stock whereas some are just wiped out when the contingency criteria are met. From what I've read, the AT1 bonds issued by Credit Suisse were of the type that get wiped out.
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  4. Deutche Bank?
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