AT1
Business & Finance abbreviation · Bond & Fixed-Income
| Stands for | Additional Tier 1 capital |
|---|---|
| Categories | Business & Finance |
AT1 stands for Additional Tier 1 capital, a bond & Fixed-Income abbreviation.
Layer of bank regulatory capital ranking below Common Equity Tier 1, made up mainly of perpetual contingent convertible bonds that can be written down or converted to equity when a bank is in trouble. Under Basel III, banks can meet part of their Tier 1 requirement with AT1.
Example: The bank called its 6 percent AT1 notes at the first opportunity and replaced them with a new issue.
Usage notes
AT1 bonds have no maturity date, and coupons can be canceled at the bank's discretion without triggering a default. Issuers traditionally redeem them at the first call date, and skipping a call can unsettle investors. Basel III lets AT1 cover up to 1.5 percentage points of the 6 percent Tier 1 minimum.
Related abbreviations
More bond & Fixed-Income abbreviations
- AAA – Highest credit rating (triple-A)
- ABS – Asset-backed security
- BTP – Buono del Tesoro Poliennale (Italian multi-year Treasury bond)
- CDO – Collateralized debt obligation
- CDS – Credit default swap
- CDX – Credit default swap index
- CLO – Collateralized loan obligation
- CMBS – Commercial mortgage-backed security
- CMO – Collateralized mortgage obligation
- CoCo – Contingent convertible bond
- CP – Commercial paper
- DV01 – Dollar value of a basis point