Indian banks' dependence on AT1 bonds limited, impact on pricing: Analysts

A decision to write down Credit Suisse's additional tier-1 bonds to zero after the bank agreed to be bought by UBS will weigh on the pricing of such notes and spook investors, Citi analysts said on Tuesday.
 

Indian lenders, however, have limited dependence on such securities, Jefferies said in a note.
 

"Another instance of AT-1 bond write-off questions seniority of claims of AT-1 bond holders and dampens sentiments for AT-1 market issuances," Citi analysts wrote in a note.
 

AT-1 bonds are hybrid securities which have loss absorbing features and can be written-down under certain scenarios, including a depletion of capital.