AT1 bond
Market basicsAlso called: Additional Tier 1 bond, Perpetual bond
A perpetual, loss-absorbing bond issued by a bank as part of its regulatory capital, ranking just above equity.
In plain terms
Sold on the yield and owned for the yield; designed to be written down in a crisis so that depositors are not. If it pays materially more than a bank deposit, that gap is precisely what it is paying for.