ECB Floats Tweaking Banks’ AT1 Capital to Better Absorb Losses

The European Central Bank proposed changing the design of a type of deeply subordinated bond issued by lenders to ensure it can absorb losses before banks fail.

By Nicholas Comfort, Mark Schroers · Bloomberg Markets

The European Central Bank proposed changing the design of a type of deeply subordinated bond issued by lenders to ensure it can absorb losses before banks fail.