Have you suffered losses investing in Credit Suisse Additional Tier 1 bonds?
The White Law Group is currently investigating potential claims on behalf of investors who lost money in Credit Suisse Additional Tier 1 (AT1) bonds after their value was wiped out during the UBS takeover in March 2023. A recent court ruling on July 7, 2025 has allowed U.S. investors to proceed with lawsuits alleging Credit Suisse misled the public about its financial condition prior to its collapse.
What are Credit Suisse Additional Tier 1 Bonds?
Additional Tier 1 bonds (AT1s) are a type of hybrid debt instrument used by banks to meet regulatory capital requirements. These bonds typically offer higher yields in exchange for higher risk and can be written down or converted to equity during periods of financial stress.
Credit Suisse issued AT1 bonds as part of its capital structure. Although these bonds are senior to common equity, they carry unique loss-absorption features, which ultimately left many investors with nothing when Swiss regulator FINMA ordered a total write-down of $17 billion worth of AT1 bonds in March 2023. This happened while UBS was allowed to acquire Credit Suisse for just $3 billion.
Risks of Credit Suisse AT1 Bonds
While marketed as income-generating securities, AT1 bonds can be extremely risky and may not be suitable for retail investors. The Credit Suisse AT1 debacle revealed several significant risks:
- Total Loss Risk – FINMA exercised its authority to write the bonds down to zero.
- Illiquidity – These bonds are often hard to sell before maturity.
- Complexity – Many investors were unaware of the full extent of the loss-absorption mechanisms built into AT1s.
- Misleading Disclosures – Investors now allege Credit Suisse made false and misleading statements about its financial health, which misrepresented the true risk.
Broker Due Diligence Obligations
Brokerage firms that recommended AT1 bonds to retail investors may have failed in their duty of due diligence and suitability. Firms have an obligation to:
- Fully understand the products they sell.
- Disclose all material risks to their clients.
- Recommend only those investments that align with an investor’s risk tolerance and investment objectives.
If your broker failed to explain the true risk of AT1 bonds—or did not perform adequate due diligence—you may have grounds for a legal claim.
FINRA Arbitration for Investment Recovery
If you were sold Credit Suisse AT1 bonds by a U.S. brokerage firm, you may be eligible to recover your losses through FINRA arbitration, a streamlined legal process used to resolve disputes between investors and financial professionals.
FINRA arbitration offers several advantages:
- Typically faster and less costly than traditional litigation.
- No requirement for class certification.
- Focused on individual accountability and broker misconduct.
Our firm has recovered millions of dollars for wronged investors through FINRA arbitration.
Contact Us – Free Consultation
If you invested in Credit Suisse Additional Tier 1 bonds and have suffered losses, please call The White Law Group at 888-637-5510 or visit https://whitesecuritieslaw.com/ for a free consultation. We represent investors nationwide and can help you explore your legal options to recover damages.
Frequently Asked Questions – Credit Suisse Additional Tier 1 bonds
1. Why were Credit Suisse AT1 bonds written down to zero?
Swiss regulator FINMA invoked emergency powers to wipe out the AT1 bonds as part of the government-brokered UBS acquisition of Credit Suisse. This shocked markets, as AT1 bondholders took losses while shareholders received some compensation.
2. Can I still sue even though FINMA ordered the write-down?
Yes. A U.S. federal judge ruled in July 2025 that lawsuits could proceed, stating it is plausible that alleged fraud and misleading disclosures contributed to the bonds’ decline before the write-down.
3. What if my broker didn’t explain the risks of AT1 bonds?
You may have a viable claim through FINRA arbitration if your broker misrepresented or failed to explain the risks. Brokerage firms have a duty to perform adequate due diligence and ensure investments are suitable for each client.
Last modified: July 10, 2025
