In 2025, there was significant interest in Additional Tier 1 capital bonds. Despite some concerns relating to AT1 securities, issuers returned to the market and found investors that welcomed the opportunity for some yield. There were also new entrants in the market in 2025. However, some of the questions relating to the loss-absorbing characteristics of AT1s linger and regulators seem ambivalent. The ECB has recommended simplifying the framework for AT1s while other regulators have removed AT1s. So, what's on the horizon?
Additional Speakers
Monsur Hussain
Head of Markets Research
Fitch Ratings
Christian Scarafia
Managing Director
Fitch Ratings
