NR1alayksiköistä
NR1alayksiköistä, often referred to as NR1 units, are a type of financial instrument that gained prominence in the early 2000s. They are essentially contingent convertible bonds, meaning their conversion into equity or write-down is triggered by specific events. These events are typically related to the financial health of the issuing institution, such as a breach of a certain capital ratio. The primary purpose of NR1 units was to help financial institutions meet regulatory capital requirements by absorbing losses during times of stress.
The structure of NR1 units is designed to be loss-absorbing. When a pre-defined trigger event occurs, the
NR1 units were particularly popular among banks and insurance companies looking to bolster their capital ratios,