$275 Billion AT1 Bank Funding Market at Risk of Tailspin

The transcript discusses the implications of a UBS deal, highlighting the conversion of liabilities into equity and its impact on bondholders. It addresses the challenges banks face in securing funding, particularly in the European context, and compares the situation to past financial crises like Lehman Brothers. The discussion also touches on the potential for bank runs and the role of central banks in stabilizing markets. The speaker expresses skepticism about certain financial instruments, such as 80 ones and Cocos, due to their risk profiles.

What are the risks associated with investing in 80 ones and Cocos according to the speaker?

What changes does the speaker suggest are necessary for the legal framework of financial instruments?