Cocos and Perls: the shock of shareholders ranking ahead of bondholders

Cocos and Perls: the shock of shareholders ranking ahead of bondholders
Credit Suisse bondholders were wiped out while shareholders got UBS shares. (Image: Getty)
Jenny Ruth
It’s never happened before and it’s one of the reasons markets remain so jittery.Normally, when any limited liability company collapses, the shareholders rank last after everybody else. So, they lose their entire investment.In the Credit Suisse bail-out/sale to UBS, the regulator decided to completely wipe out the money investors had in alternative tier 1 bonds (AT1) while allowing Credit Suisse’s shareholders to realise a fraction of their equity.So, the AT1 bondholders lost all of their more than US$17 billion (NZ$27.3b) inv...

More Finance

Officials MIA on banking competition, say critics
Finance

Officials MIA on banking competition, say critics

Over-regulation of the banking sector is blamed for stifling competition.

Pattrick Smellie 20 Feb 2025
Heartland declares $49.6m impairment in NZ business
Finance

Heartland declares $49.6m impairment in NZ business

Heartland Group shares fell 12% in early trading.

Gregor Thompson 18 Feb 2025
Big banks scrubbing public mentions of DEI
Finance

Big banks scrubbing public mentions of DEI

Citigroup and others seek to avoid possible litigation and federal probes.

Toy entrepreneur quashes spec of NZME takeover
Finance

Toy entrepreneur quashes spec of NZME takeover

Zuru founder Nick Mowbray says a report speculating he could take over private media company NZME is wrong. On Friday morning, The Australian’s Data Room said “some wealthy Kiwis” were plotting to do something about the state of New Zealand’s media industry and cited Mowbray as a...

Victoria Young 14 Feb 2025