Credit Suisse AT1 holders' hollow victory and Islamic innovation

Send us Fan Mail◆ Holders win write-down ruling but path to recovery uncertain ◆ StrideUp brings Islamic innovation to UK securitization ◆ Emerging market bonds have an off-week (almost)We picked apart a Swiss court ruling this week that overturned the country's financial regulator's decision in March 2023 to write-down Credit Suisse's additional tier one (AT1) paper.The decision was controversial at the time because the AT1 holders came out worse from the collapse of Credit Suisse than shareholders — an upending of the traditional creditor hierarchy. But the ruling raises just as many questions as it answers about what investors are now due and who should pay it.In the UK RMBS market, StrideUp is bringing an innovative deal that, if successful, could show a way to help finance the country's 4m Muslims' path to home ownership without them having to compromise their faith.We explain how this Sharia-compliant securitization works and discuss whether it will catch on.Finally, after smashing issuance volume records just last week, emerging market bond issuance dried up this week. We examine the causes but also unearth some bright spots in the primary market that give optimism for the weeks ahead.