More revelations of exposure in Credit Suisse’s AT1 notes have emerged, this time at three major brokerages in Japan.
SBI, Rakuten and Monex sold Credit Suisse’s Additional Tier 1 (AT1) notes to retail investors in Japan, according to a «Bloomberg» report citing product materials from the three online brokerages. The minimum purchase amount was as low as $200,000.
The report notably claims that the possibility of a write-down due to a «viability» event is not mentioned as a feature of the notes in various documents from the three firms. Swiss officials would eventually use this provision to proceed with the wipeout of Credit Suisse’s AT1 notes.
According to finance minister Shunichi Suzuki, Japanese investors bought around 140 billion yen ($1 billion) worth of Credit Suisse’s AT1 debt. Clients of Mitsubishi UFJ Financial Group’s securities joint venture with Morgan Stanley accounted for the greatest share of losses.
