Credit Suisse “AT1 bond” corporate bond problem Limited domestic impact Financial Services Agency | NHK

“Credit Suisse” issued a specific corporate bond called “AT1 bond” and sold it to institutional investors around the world, but with the acquisition by the same Swiss financial giant “UBS” announced that “AT1 bonds” equivalent to approximately 2.2 trillion yen in Japanese yen will be worthless.

In connection with this, the asset management company “Nomura Asset Management” announced that there are 31 investment trusts that incorporate “AT1 bonds” as of the 17th of this month.

The total amount is about 550 million yen, and the proportion of “AT1 bonds” among these investment trusts is the highest at 0.79%.

Nomura Asset Management commented, “We will operate while carefully monitoring the impact.”

On the other hand, the Financial Services Agency has said that there have been no reports of large losses from domestic financial institutions so far regarding the “AT1 bonds”, and the impact is considered to be limited.

Sayuri Ito, research director of the NLI Research Institute, said, “Until now, there was not much awareness that AT1 bonds would incur losses. I am concerned that the turmoil in the economy will spread to the financial system.”