The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Credit Suisse deal marks breakthrough for contingent convertibles

Strong demand from conventional investors promises bright future for new-style bank capital; regulatory support, hunger for yield, a simple structure, and clever timing are keys to success.

No sooner had bond market participants learned of Credit Suisse’s successful completion of a buffer capital notes deal widely marketed to investors outside the US than expectations grew that more offerings would follow quickly in the weeks ahead. Suddenly estimates for the eventual supply in a new and unproven bank capital market that has stuttered along with a handful of outstandings for the past 15 months start at $500 billion and go up from there. The $2 billion Credit Suisse transaction generated demand of $22 billion, with orders coming in from 500 separate accounts ranging from private banks to hedge funds, specialist convertible funds and conventional fixed-income investors.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to Euromoney.com and Asiamoney.com analysis and receive expertly-curated updates direct to your inbox.

 

Already a user?

Login now

 

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree