The goose that laid the golden eggs

AT1 bonds have a cushion on both sides. They are affected only after either equity or debt has been impacted

There have been allegations of mis-selling of AT1 bonds in India and elsewhere. These bonds have been written off fully to resolve the stress of some issuers. The subscribers are seeking help from every possible source, including the police, regulators, and courts. With widespread discontent, the existence of these bonds that emerged as a lifeline for banks following the global financial crisis is threatened.

A real sector company typically funds its operations through equity and debt. Since equity carries higher returns commensurate with risks, it is the first asset class to be hit in the case of a financial stress.