This is because of the type of bond these bond holders held. It's called AT1 (additional tier 1) bond where in the event of issuers default, they are the first one to be written off in order to contain/cushion the blow of the default. They should have known the risk so I don't know how much legal leg these bond holders have against credit Suisse
tophaj t1_jeew3zt wrote
Reply to In Credit Suisse bank take over why were bondholder not get paid but shareholders did get paid? by DhairyaVed
This is because of the type of bond these bond holders held. It's called AT1 (additional tier 1) bond where in the event of issuers default, they are the first one to be written off in order to contain/cushion the blow of the default. They should have known the risk so I don't know how much legal leg these bond holders have against credit Suisse