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VisitWhat will be the future of hybrid securities in Australia by end of 2025 post-APRA's decision?
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Financial market trends and reports from Australian financial analysts
Australia's APRA to Eliminate $43 Billion Contingent Convertible Securities Market After Credit Suisse Collapse
Dec 9, 2024, 06:15 AM
Australia's banking regulator, the Australian Prudential Regulation Authority (APRA), is set to eliminate the market for contingent convertible securities, marking a significant shift in the country's financial landscape. This decision follows the collapse of Credit Suisse last year, which raised concerns about the stability of hybrid securities. The move impacts a $43 billion market, provoking backlash from investors who feel abandoned by APRA. Critics argue that the regulator's actions do not adequately protect retail investors, particularly those invested in second-tier banks, raising questions about the future of these financial instruments in Australia.
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