Core Viewpoint - A Swiss court ruling has provided new hope for approximately 3,000 Credit Suisse bondholders seeking damages after the write-down of 16.5 billion Swiss francs ($20.5 billion) in additional-tier 1 bonds during UBS's government-brokered rescue of Credit Suisse in March 2023 [1][2]. Legal Proceedings - The Swiss Federal Administrative Court ruled on October 1, allowing bondholders to appeal and revoking the previous decree, although the court has not yet decided on the reversal request [2][6]. - The other cases related to this issue are now suspended until the final decision on the decree's revocation is made, indicating that actual compensation may take years [2][7]. Controversy Surrounding AT1 Bonds - The write-down of AT1 bonds during the Credit Suisse rescue was controversial, as typically shareholders absorb losses before bondholders [3]. - The government and regulator Finma argued that investors should have been aware of the risks outlined in the bonds' fine print [3]. Market Reaction - Following the court ruling, UBS shares fell by 2.1%, trading at 31.80 Swiss francs [4]. - Prices for claims tied to the AT1 bonds increased significantly, with dealers willing to buy claims for as much as 22 cents on the dollar, up from about 12 cents prior to the ruling [5]. Future Implications - The court stated that the bondholders' property rights were significantly interfered with without a clear legal basis, which raises questions about the future of the write-down [8][9]. - Finma, the Swiss government, and the Swiss National Bank have the option to appeal this ruling to the Swiss Supreme Court, which could further delay any resolution [6][7].