After the 2008 financial crisis, banks were required to bolster their capital reserves under the Basel III norms, leading to the issuance of Additional Tier 1 (AT1) bonds. These bonds serve as supplementary capital, combining features of both debt and equity. Unlike traditional bonds, AT1 bonds are perpetual, meaning they do not have a maturity date, and they come with higher returns but also greater risks. Investors face the possibility of the bank converting these bonds into equity or even writing them off entirely during financial distress. Additionally, interest payments are not guaranteed, and liquidity can be a concern due to their thin trading on stock exchanges. The high minimum investment threshold makes AT1 bonds more suitable for high net worth individuals and institutional investors rather than retail investors.