Tier 1 capital: Difference between revisions

Tier 1 capital (view source)

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 But is that really true?
+The panel above illustrates our best guess of the cumulative shareholder return — the diminishing cash dividends paid plus ongoing share price, which was in of course in insistent decline over 5 years — and cumulative AT1 return, which is a a much fatter, fixed coupon plus its market redemption value , which we have just made up, but on the premise that until things get truly dire, it will stay somewhere near par. It was trading at 25% on the last trading day before it was vapourised.
+The obvious thing about this is that, for a buy and hold, long term investor, it's return has been better than the common equity, ''including after it was nixed''. The combined coupons since issue are easily more than the final acquisition price. In all circumstances ''except a thermonuclear meltdown'' the Cocos were a vastly better investment.
+And we should not feel undue sympathy for distressed ahem vultures looking to buy a 7% fixed instrument for cents on the dollar when the issuer is in the midst of a well telegraphed existential meltdown? ''We should not
+You out everything on red and it came up black.
+“Ah yes, you counter, but tell that the the distressed investors who bought the AT1s on Saturday.
 {{sa}}