...AT1 Volumes Hit by Market Volatility in 2Q15 Issue volumes of additional Tier 1 (AT1) instruments in 2Q15 were significantly lower than in previous quarters at around USD11bn. Unfavourable market conditions in the quarter also meant that issuers were typically either large, established issuers or small banks issuing to local investors. Second-tier banks, which had issued sizeable volumes in 1Q15 and 4Q14, were virtually absent. At end-2Q15, capital instruments with numerical write-down or conversion triggers included in the Fitch AT1 Tracker amounted to around USD177bn. Volumes to Pick Up in 2H15 AT1 issue volumes have picked up, reflecting subsiding volatility and narrowing credit spreads since early July, but this remains limited to established names (Barclays, UBS) or well-known new entrants (BNP, RBS). We expect strong issuance volumes in the remainder of the year, driven by continued regulatory support for the asset class as well as many banks being ahead of their senior debt funding...
