AT1 Bond Rout Prompts European Officials to Try to Calm Market

European authorities sought to restore investor confidence in the sort of risky bank bonds that were wiped out in the shotgun deal to save Credit Suisse Group AG, telling them that they should only face losses after shareholders are fully written down.

Investors were dumping the notes, known as Additional Tier 1 bonds, issued by many other European banks on concern that they too could get wiped out in a similar situation. AT1s from UBS Group AG and Deutsche Bank AG fell by more than 10 cents on Monday.

Credit Suisse’s bond documents stated that investors were at risk ...