ECB Seeks Global AT1 Bond Rules After Credit Suisse Wreck

The European Union’s top bank regulator urged global rules for a type of hybrid debt issued by lenders, after the market for the securities was rattled this year when such bonds were wiped out in the rescue of Credit Suisse.

Global rules would help additional tier 1 bonds fulfill their regulatory purpose because then “everybody understands how these instruments work in times of stress,” Andrea Enria, the head of the European Central Bank’s supervisory arm, said at a conference. He suggested the international standard-setting body known as Basel Committee should standardize the debt.

AT1 securities played a ...