riskier bonds issued by banks are recovering further from the turmoil caused by us regional lenders and credit suisse group ag’s crisis offering some of the best gains in debt markets and as demand returns for new deals prices of such capital securities including the riskiest additional tier 1 notes climbed on tuesday to their highest since silicon valley bank’s collapse on march 10 a bloomberg index shows the notes have returned 12 since credit suisse’s rescue later that month triggered a 17 billion writedown of its at1 debt meantime two european banks on tuesday sold the first publiclysyndicated at1 bonds on the continent since the swiss lender’s crisis the developments are the latest signs of easing concerns about the health of the global banking sector as hopes grow that major central banks are nearing the end of their tightening cycles the reopening of the at1 issuance market in europe is particularly encouraging as it followed a series of new offerings in japan where demand partly benefited from entrenched expectations for low interest rates morgan stanley strategists included european banks’ at1 bonds as one of their top trades in their midyear outlook citing “strong profitability and robust balance sheets” for the region’s lenders in asia they liked japanese banks’ total lossabsorbing capacity debt a less risky category than at1s compared to the bank debt’s strong performance a broad gauge of global bonds including investmentgrade and junk notes has lost 095 since the banking turmoil in march a bloomberg index shows