AT1 bonds hold firm amid turmoil

INVESTORS in bank capital markets are signalling that they will stay put rather than sell Additional Tier 1 (AT1) bonds – a risky slice of bank debt – even as financial markets flinch at geopolitical tensions.

That reluctance to let go could shield the market for these so‑called “AT1s” from the sharp sell-offs seen elsewhere since the outbreak of war in the Middle East, according to a Bloomberg report.