medium · Debt Capital Markets bond-instruments-structures
An issuer has $200 million of 8% perpetual AT1 bonds. If the bank's CET1 ratio falls below 5.125%, the bonds are 'written down' to zero.
This is an example of which type of trigger?
- Market-price-based trigger
- Discretionary qualitative trigger
- Mechanical quantitative trigger
- Maintenance covenant trigger
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