The authors are Reuters Breakingviews guests columnists. The opinions expressed are their own, and do not represent the views of the Bank for International Settlements or any other institution with which they are or have been affiliated.

By Kumar Rishabh, Yvan Lengwiler and Alessandro Di Stefano

July 9 (Reuters Breakingviews) - The bank’s 2023 failure zeroed $17 bln of AT1s but didn’t touch another type of bond designed to take losses. A new study finds that credit investors noticed. Bank funding costs fell and market discipline weakened, reflecting diminished faith in post-2008 resolution regimes.

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Part of the work referenced in this piece was carried out at the Bank for International Settlements. The authors' other affiliations are as follows. Kumar Rishabh: HEC Lausanne and University of Basel. Yvan Lengwiler: University of Basel. Alessandro Di Stefano: University of Bern.