Citation :
Shares of European banks traded in Asia tumbled Monday, as investors weighed a collapse in the value of additional tier 1 bonds issued by lenders following the terms of the Credit Suisse Group AG’s rescue. HSBC Holdings Plc fell as much as 6.6% in Hong Kong trading, the biggest drop in nearly six months, with its newly issued AT1 bond declining more than 5 cents. Standard Chartered Plc slid as much as 5.6%. In a sign of contagion, some Asian banks’ AT1 bonds, which are deemed as the riskiest bank securities, fell by a record. Bank of East Asia Ltd.’s 5.825% perpetual dollar note slumped 8.6 cents to 79.7 cents, which would be a record decline if maintained through the end of Monday’s trading, according to data compiled by Bloomberg.
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