{"id":7099,"date":"2020-03-13T14:49:16","date_gmt":"2020-03-13T09:19:16","guid":{"rendered":"https:\/\/triumphias.com\/blog\/?p=7099"},"modified":"2020-03-13T14:49:16","modified_gmt":"2020-03-13T09:19:16","slug":"additional-tier-1-bonds-at-1-bonds","status":"publish","type":"post","link":"https:\/\/triumphias.com\/blog\/additional-tier-1-bonds-at-1-bonds\/","title":{"rendered":"Additional Tier-1 bonds (AT-1 bonds)"},"content":{"rendered":"<p><strong>Relevance: Prelims: Economy<\/strong><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/static.toiimg.com\/thumb\/msid-74567674,imgsize-100925,width-400,resizemode-4\/74567674.jpg\" alt=\"Image result for Additional Tier-1 bonds\" \/><\/p>\n<p><strong>Why in news?<\/strong><\/p>\n<p>The RBI reconstruction plan for Yes Bank puts to risk nearly Rs 9,000 crore worth of AT-1 bonds. The bondholders have reportedly postponed their legal challenge to the RBI\u2019s scheme.<\/p>\n<p><strong>About:<\/strong><\/p>\n<ul>\n<li>AT-1, short for Additional Tier-1 bonds, are a type of unsecured, perpetual bonds that banks issue to shore up their core capital base to meet the Basel-III norms.<\/li>\n<li>As per RBI rules based on the Basel-III framework, AT-1 bonds have principal loss absorption features, which can cause a full write-down or conversion to equity on breach of a pre-specified trigger of common Tier 1 capital ratio falling below 6.125 per cent.<\/li>\n<\/ul>\n<p><strong>Key highlights:<\/strong><\/p>\n<ul>\n<li>AT-1 bonds have several unusual features:<\/li>\n<li>One, these bonds are perpetual and carry no maturity date. Instead, they carry call options that allow banks to redeem them after five or 10 years.<\/li>\n<li>Two, banks issuing AT-1 bonds can skip interest payouts for a particular year or even reduce the bonds\u2019 face value witthreshold levels.<\/li>\n<\/ul>\n<p><span style=\"color: #0000ff;\"><strong>For more such notes, Articles, News &amp; Views Join our Telegram Channel.<\/strong><\/span><\/p>\n<p><span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" title=\"Telegram Link\" href=\"https:\/\/t.me\/triumphias\" target=\"_blank\"><strong>https:\/\/t.me\/triumphias<\/strong><\/a><\/span><\/p>\n<p><span style=\"color: #0000ff;\"><strong>Click the link below to see the details about the UPSC \u2013Civils courses offered by Triumph IAS.<\/strong> <\/span><span style=\"color: #ff0000;\"><strong><a style=\"color: #ff0000;\" title=\"Courses available\" href=\"https:\/\/triumphias.com\/pages-all-courses.php\">https:\/\/triumphias.com\/pages-all-courses.php<\/a><\/strong><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Relevance: Prelims: Economy Why in news? The RBI reconstruction plan for Yes Bank puts to risk nearly Rs 9,000 crore<\/p>\n","protected":false},"author":1,"featured_media":4358,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[123],"tags":[392],"class_list":["post-7099","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs","tag-union-public-service-commission-upsc"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/7099","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/comments?post=7099"}],"version-history":[{"count":1,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/7099\/revisions"}],"predecessor-version":[{"id":7100,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/7099\/revisions\/7100"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media\/4358"}],"wp:attachment":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media?parent=7099"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/categories?post=7099"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/tags?post=7099"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}