What happened
The chairman of UBS stated that AT1 bonds constitute real capital, according to a report from Sina Finance.
The same report noted that both BlackRock and PIMCO support AT1 bonds.
Why it matters
The remarks offer a public defense of a category of bank capital instruments that has drawn scrutiny, and the cited backing from two large asset managers suggests continued institutional acceptance of AT1 debt.
Because the source material is limited to the chairman's characterization and the two firms' support, the practical implications for pricing, issuance or regulation cannot be determined from this item alone.
Key facts
UBS's chairman said AT1 bonds are real capital.
BlackRock and PIMCO both support AT1 bonds.
The report was published by Sina Finance and carried by East Money.
What to watch next
Whether UBS or the named asset managers elaborate further on their positions regarding AT1 bonds.
Any subsequent market or regulatory response to the chairman's characterization of AT1 bonds as real capital.
