Cryan: AT1 bonds are a 'bad product'

摘要

Deutsche bank boss John Cryan said last week that he dislikes the hybrid bond instruments that caused trouble for his bank last month, saying they are a "bad product" and are "too prone to be mis-sold". Additional Tier 1 bonds - also known as CoCos - convert into shares or are wiped out, sometimes temporarily, if a bank's capital falls below a certain level and are intended to provide an extra cushion of capital for banks. Deutsche has sold €5bn-equivalent of AT1s, and said last year it might issue a further €3bn to €4bn. But last month the value of Deutsche's AT1s cratered on fears that it might be unable to pay interest on them.