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Credit Suisse investors lose battle to insure against bond wipeout

Panel rules credit default swaps will not be triggered for AT1 holders that were zeroed after landmark takeover

Investors trying to claim on credit default swaps after the Swiss bank's rescue have had their appeals rejected
Investors trying to claim on credit default swaps after the Swiss bank's rescue have had their appeals rejected Photo: Fabrice Coffrini/Getty Images

Holders of insurance against Credit Suisse’s AT1 bonds will not receive a payout, a committee has ruled.

A panel made up of banks and asset managers has decided that the write-down by the Swiss government of $17bn of the Swiss bank's AT1 bonds does not constitute a “governmental intervention credit event” that would have triggered insurance claims.

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