The World of Bank Capital
AT1, CoCo, bail-in — bonds designed to absorb losses in a crisis
⏱ ~70 min · 5 steps
Master spread and OAS pricing, understand bank ALM, then dive into the Credit Suisse AT1 write-down — the most dramatic bank capital event in modern history.
Learning Sequence
- 1🎓 Market 101
Spread & Basis
Understand spreads as the universal language of credit risk — the starting point for all bond analysis.
Read → - 2🎓 Market 101
OAS (Option-Adjusted Spread)
Learn why AT1s and other callable bonds require OAS rather than nominal spread for accurate comparison.
Read → - 3🎓 Market 101
ALM (Asset-Liability Management)
See how banks manage asset-liability mismatches — and how ignoring this dynamic contributed to SVB's collapse.
Read → - 4📊 Market Story
Credit Suisse AT1 Write-Down (2023) — The Capital Hierarchy Inverted
The 2023 Credit Suisse AT1 write-down — how PONV triggered, what bail-in means in practice, and why AT1 investors lost everything before equity holders.
Read → - 5📊 Market Story
Silicon Valley Bank Collapse — 48 Hours of ALM Failure
Two bank crises in the same year (2023), different causes — SVB was ALM failure, CS was credit deterioration. Comparing them reveals the two axes of bank risk.
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