Fitch Ratings Fitch has said that it thinks it is “unlikely” that the European market will follow Australia in the near term over phasing out Additional Tier 1 AT1 capital instruments, according to a note dated September 20.
The European Banking Authority seems more focused on ensuring suitable consistency across instruments with similar loss-absorbency features, to “improve transparency about their role and reduce the risk of market confusion about the trigger mechanisms”, the note said.
The note comes after the Australian Prudential Regulation Authority APRA outlined proposals to phase the bonds out by January 1, 2027, according to a discussion paper released...
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