‘Everybody hated the asset class’
12 April 2024
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3 min read
Pictet Asset Management has loaded up on Additional Tier 1 bonds after divesting from the asset just weeks before the collapse of Credit Suisse last year.
The $252bn asset manager slashed its AT1 bond exposure at the end of February last year, just weeks before the government-backed takeover of Credit Suisse by UBS led the Swiss regulator to wipe out $17bn worth of the struggling bank’s AT1 bonds.
This led to some market participants to deem the AT1 bonds market – which at the time held $260bn in assets – ‘uninvestable’, while other investors perceived the sell-off as a buying opportunity.
Government-supported buyout wipes out $17bn in Credit Suisse bonds
Pictet began adding AT1s back into its key long strategies in November, jumping…
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Features Editor at Investment Week