Although my financial industry did not directly invest in Credit Suisse AT1 bonds, according to the latest inventory released by the Financial Supervisory Commission today, from the perspective of clients, there are 5 banks whose wealth management customers have stepped on NT$1.6 billion, and the loss may be directly reduced to zero. .
[Reporter Wang Menglun/Taipei Report] The Credit Suisse storm spreads!
Although my financial industry did not directly invest in Credit Suisse AT1 bonds, according to the latest investigation released by the Financial Supervisory Commission today, from the perspective of clients, there are 5 banks whose wealth management customers have stepped on NT$1.6 billion, which may be directly reduced to Zero; in addition, Chinese people invest in overseas funds and link to Credit Suisse AT1 bonds, about NT$72.94 million, which will result in a loss of net worth.
If the above two types of investors, including financial management customers through banks and AT1 bonds held through overseas funds, add up, they may lose nearly 1.7 billion yuan.
Please read on...
The so-called AT1 bond (Additional Tier 1) is a type of CoCo bond (CoCo Bond), which is a subordinated bond, which means that the repayment order will be lower than that of ordinary bonds.
Foreign media reported on Monday that UBS agreed to acquire Credit Suisse, but about US$17.3 billion in "additional tier one capital" (AT1) bonds will be written off to zero and directly reduced to wallpaper.
According to the latest statistics from the Financial Regulatory Commission at the end of February, the banking, insurance and securities and futures industries (three financial industries) have an overall bond exposure position of 155.6 billion yuan to Credit Suisse; however, the banking, insurance and securities and futures industries have not stepped on Credit Suisse's position. AT1 bonds.
However, if further investigation is carried out, investors will invest their own positions. The Financial Supervisory Commission stated that customers of a total of 5 banks hold Credit Suisse AT1 bonds with a total of 1.6 billion yuan.
Tong Zhengzhang, deputy director of the Banking Bureau, said that there is no statistics on the number of customers holding Credit Suisse ATI bonds, but last year saw Credit Suisse's financial crisis broke out, and he sent a letter to all banks on November 14 last year, requesting the industry to actively respond The international financial situation has changed, and the control of banks' sales of financial products has been strengthened.
Tong Zhengzhang said that the content of the letter has two major points. The first is "the establishment of an early warning management and control mechanism", which requires banks to establish and strengthen a major event early warning management and control mechanism for the sale of financial products. When the time comes, the bank should grasp it in real time and carefully evaluate it, including "stop selling strategy", "assisting clients in communication with clients" and "assisting clients in redemption transactions", etc.
The second is "protecting the rights and interests of customers". All banks need to take the initiative to care for their customers, and also let customers grasp the latest information changes, so that customers can make investment decisions with an evaluation basis.
Zhang Zimin, deputy director of the Securities and Futures Bureau, said that as of the end of February this year, domestic investment trust funds did not hold Credit Suisse AT1 bonds;
In addition, it was also reported today that the global investment management organization "PIMCO" may have invested and held Credit Suisse AT1 bonds and lost 340 million US dollars in write-offs; according to PIMCO's self-disclosure, 15 overseas funds it invested in held Credit Suisse AT1 bonds.
Zhang Zimin said that after understanding, Chinese investors bought PIMCO's overseas funds and linked them to Credit Suisse AT1 bonds, which converted to about NT$72.94 million.
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