From At1 bonds to credit default swaps: vocabulary of the crisis (and risks for consumers)

From At1 bonds to credit default swaps: vocabulary of the crisis (and risks for consumers)

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The acronyms of the crisis

AT1, senior, junior, cds…Since the Credit Suisse bailout was aired, via Ubs, many acronyms have popped up in the financial news which, in general, are only familiar to insiders. What do they mean? How can they cross the lives of individual Italian savers? In the next tabs a small manual for orientation. Here is the first general caveat: the riskiest bank securities, indicated for various reasons by those acronyms, often cannot be purchased directly by the average private investor. But this is not enough to completely close the door to risk even for those not directly interested, because the markets work like communicating vessels.

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