Basel-endgame pushback has reduced the urgency for US banks to relieve capital, but investor appetite for significant risk transfer trades is spilling over to Europe.

ADIB’s almost 10-times oversubscribed additional tier-1 issuance shows interest in the product is alive and well for the right issuer, but demand won’t be the same for every bank.

Regulators forced banks to skip dividends during Covid, but let them make up payouts later on. They should now do the same for AT1s or risk that market failing.

Bankers are hopeful that they may soon be able to issue new AT1 deals again as the secondary market recovers from the Credit Suisse write-down.

The cost of regulatory capital associated with lending will keep rising after the recent scare over deposit flight and the coming credit downturn. The solution for banks is to reduce risk-weighted assets on their balance sheets by buying protection from credit funds eager to diversify away from leveraged loans.

It seems difficult to convince investors that higher bank profits are sustainable.

AT1s rallied on news that UBS will redeem a key deal in January. But with refinancing costs higher than coupon re-sets, the pressure now passes to other big banks.

The European Central Bank has radical suggestions for ending AT1 conversion triggers and allowing only profitable banks to pay coupons. This could make these instruments riskier than equity.

A second large AT1 deal this year shows increased investor confidence around the bank’s transformation, but timing the deal was tricky.

European bank shares have rallied even though the pain of loan losses still lies ahead. It is also not clear how they will repay emergency ECB funding

Banks in Europe face a bleak choice. They can redouble cost cutting and capture the move to digital. They can also top up capital with AT1s, for which there is still a bid. But as the acute phase of the crisis now approaches and loan losses rise, banks’ fabled capital strength faces a stern test

The AT1 market has grown to almost $200 billion equivalent, with perhaps $20 billion equivalent of net new issuance to come from banks filling P2R buckets with lower-quality capital than CET1.

One intriguing sub-plot of a wild year in bank capital has been the advent of green AT1 and tier-2 deals.

As it presses ahead with restructuring, Deutsche will exit cash equities, cut back in rates and centre itself on a traditional corporate banking business. CEO Christian Sewing calls it the most radical transformation the bank has undertaken in decades.

Additional tier-1 (AT1) securities and contingent convertible capital instruments, known as CoCo bonds, absorb losses when the capital of the issuing financial institution falls below a supervisor-determined level. Here we explain everything you need to know about these hybrid securities, a key plank in bank-resolution plans, and implications for issuers and investors.

The bizarre communications management of the announcement prompts more head shaking than the actual event itself.

New investigations into the troubled bank evoke bad memories.

UniCredit's CEO puts his money where his mouth is.

AT1 contingent capital bonds are entering their second generation; issuers have begun refinancing the $200 billion asset class, but just two years ago the market looked close to collapse. What took it to near disaster? And how did it escape?

What to do when questions are being asked about the effectiveness of low-trigger CoCos? Issue higher trigger ones, of course.

Talk of exchange-traded funds offering exposure to additional tier-1 debt may not be as worrying as it sounds

An investment fund focused on banks with a slant on Europe and Italy might sound like a recipe for disaster, but Davide Serra of Algebris tells a story of market-beating returns and snowballing AuM, and thinks the best times lie ahead.

A textbook case, a long-inevitable state bailout and a brazen political fudge: Europe’s BRRD has had something of a rough ride this summer. As the region’s banks brace themselves for the capital-raising marathon that is MREL, are the new resolution regulations actually doing more harm than good?

As a self-described ‘insider-outsider’ at UniCredit, Jean Pierre Mustier has transformed the image of Italy’s biggest bank – inside and out – over an extraordinary 12 months as CEO.

Bank warns on AT1 coupon if €13 bln rights issue fails; move highlights importance of capital increase.

Deutsche crisis hits AT1 bonds again; new trigger language needed.

Investors dump Deutsche after CFO funding boast; Fears spread to other bank stocks.

It’s easy to blame technical factors and investors’ misunderstanding of the new AT1 market for February’s sharp sell-off across the bank sector, but investors may have a firm grasp of the fundamentals.

Secondary yields rise above cost of equity; bankers pin hopes on lack of alternatives.

Subordinated debt meltdown raises capital questions; investors and issuers ‘don’t know’ how bail-in works.