Credit Suisse Investors See Bail-In Risk for $82 Billion Bonds

A category of Credit Suisse Group AG bonds is warning that a liquidity lifeline from Switzerland’s central bank may not be enough to stabilize the embattled lender.

The bank’s holding company has almost 76 billion Swiss francs ($82 billion) of bail-in senior bonds and additional tier 1 notes that are trading at distressed levels. If the regulator steps in to protect Credit Suisse’s depositors, the AT1s would be written off while bail-in-able senior holding company debt would be converted to equity, according to Finma, which regulates banks in Switzerland. AT1s can also be written down if the bank’s capital ...