hard · Debt Capital Markets
A bank is structuring an Additional Tier 1 (AT1) instrument.
Which combination of features is mandatory for the instrument to qualify as going-concern regulatory capital?
- Five-year maturity, cumulative coupons, and senior unsecured status.
- Fixed maturity date, mandatory coupons, and collateralization by mortgage assets.
- Perpetual maturity, discretionary non-cumulative coupons, and a principal write-down or conversion trigger.
- Perpetual maturity, coupons tied to LIBOR, and a guarantee from the home sovereign.
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