Pimco, Invesco Face Biggest Losses on Risky CS Bonds

The video discusses the impact of the UBS takeover on AT1 bondholders, highlighting significant losses for major holders like PIMCO and Invesco. It explores market reactions, including trading activities and potential legal actions to recover value. The Swiss law's unique approach to bond write-downs led to a rally in European AT1 bonds, raising questions about the future of these financial instruments and investor confidence.

How did the market react when it realized that the Swiss law regarding write-downs was more of an exception?

What existential questions does the situation raise for the future of additional Tier One bonds?