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Wealthy investors flock to AT1 bonds amid flurry of issuances

By Ashley Coutinho Wealthy investors and institutional investors are flocking to additional tier-I (AT1) bonds in search of higher yields amid a flurry of issuances in the past few weeks. Experts said that these issuances have taken off given the reduction in trading volatility seen in such bonds and cleaner balance sheets of banks. Such bonds provide a higher yield for investors and an alternate source of capital for issuers. “Perpetual bonds (AT1 bonds) are quite popular among investors in India. Many debt mutual funds across categories allocate to AT1 bonds. In fact, wealth managers also recommend perpetual bonds directly …

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