CDS committee accepts to hear question on Credit Suisse AT1 bonds

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Sharjah 24 – Reuters: The Credit Derivatives Determinations Committee (DC) accepted on Friday to look into a question on whether a "governmental intervention credit event" occurred with respect to Credit Suisse GSGN.S.

The DC overlooking Europe will have to determine specifics of the subordination of Credit Suisse’s additional tier-1 (AT1) bonds, according to the DC website.

As part of its takeover by UBS Group AG UBSG.S, the Swiss regulator decided Credit Suisse’s AT1 bonds, with a notional value of $17 billion, would be valued at zero, in a move that angered some holders of the debt.

Questions to the DC are typically raised in the process to determine whether a certain event will trigger payment of default insurance known as credit default swaps.