US Equities Rapidly Rise and AT1 Bonds Are Favored🤝
A quiet day in the markets where US equities managed its 8th straight day of gains thanks to a strong closing rally in the final stretch of trading. 10y yields fell to the lowest levels since September as the auction was well absorbed, and the rest of macro assets continued to move in a synchronized move stronger in the continued risk-on move.Some of our readers with long memories might remember the infamous AT1 bonds that roiled Credit Suisse in Q1, where it's historic demise was thought to have shut off the market appetite for these capital bonds for a long time. Well, markets have short memories, and UBS's 2yr AT1 issuance saw a 10x over-subscription interest, drawing $36 bln of bids for a $3.5bln deal size. The rest of the AT1 index has also recovered most of its March losses, though unable to regain its pre March gains, as concerns still linger over the legal trigger clause disputes seen that surfaced during the CS bankruptcy.
