Mar 22, 2023
Here’s a Guide to Impending AT1 Bond Call Dates in Asia
(Bloomberg) -- (Corrects story published on March 23 to remove data on several bonds that have or may have already been called and revises figures in story accordingly)
A few days after investors in the Additional Tier 1 bond market were jolted by the wipeout of Credit Suisse Group AG’s notes, those holding similar debt in Asia are staring at securities with call dates this year.
There are some 84 with the option to call them back in 2023, according to data compiled by Bloomberg. Some those securities come with a feature that may result in them getting temporarily or permanently written down, while others an option that allows holders to convert to equity.
The scrutiny on bonds with impending call dates shows how investors are rattled about the stability of the broader market after a shotgun deal to rescue Credit Suisse rendered its AT1s worthless and sparked huge losses for bank debt on Monday. Notes of some of the biggest lenders in the Asia-Pacific region have since rebounded as regulators helped boost confidence, with about half of the dollar AT1 debt tracked by Bloomberg posting gains on Thursday morning.
“Major Southeast Asian banks’ Additional Tier 1 appear to face low non-call risks given ample capital reserves and minor refinancing needs. This is despite a possible freeze on new issuance of AT1s due to negative sentiment after Credit Suisse’s wipeout.”
- Rena Kwok, BI
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Five of the bonds from Asian issuers are dollar-denominated, totaling more than $6 billion, and callable in the second half of 2023. The remainder are in other currencies, ranging from the Korean won to Indian rupee.
The table below shows some AT1 notes with upcoming call dates. Click here for an excel sheet of more bonds.
--With assistance from Jiyeun Lee.
©2023 Bloomberg L.P.