31 Aug 2023

Recent Developments in the AT1/CoCo Bond Market: ZKB Unexpectedly Skips an AT1 Call!

After the Credit Suisse turmoil, the AT1/CoCo bond market is witnessing intriguing dynamics as Zürcher Kantonal Bank (ZKB) takes an unexpected turn by choosing to bypass an AT1 call. In a landscape where banks are carefully navigating refinancing challenges, this move adds a new layer of complexity to the market. ZKB's decision to forego the AT1 call comes in the wake of Banco Santander's similar choice, signaling a trend toward cautious financial strategies in the face of fluctuating market conditions. These recent developments are shedding light on the intricate decision-making processes that banks are employing to balance their financial stability and growth prospects.


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