Bonds & Fixed Income
2 terms
Accrued Interest
Bonds & Fixed Income
₹
Interest earned on a bond since the last coupon payment but not yet paid out.
Accrued Interest = Coupon Payment x (Days Since Last Coupon / Days in the Coupon Period)
AT1 Bond
Bonds & Fixed Income
qualitative
An Additional Tier 1 bond: a perpetual, subordinated bank instrument that can be written down or converted to equity to absorb losses.
Test: perpetual, subordinated, with discretionary coupons and a contractual write-down or conversion trigger on a capital shortfall