This contribution evaluates the effectiveness of AT1 bonds in fulfilling their intended functions, with a particular focus on their role in mitigating systemic risk and absorbing losses on a going-concern basis. Using the Credit Suisse case during the March 2023 banking crisis as a reference, we highlight how the CHF 16 billion write-down of AT1 bonds exposed critical weaknesses, including their delayed loss-absorbing function and unintended perverse incentives. While we do not yet advocate for the abolition of AT1 bonds, we explore potential reforms to enhance their effectiveness. These measures include introducing an automatic early trigger for suspending coupon payments or bond redemptions, raising quantitative thresholds, and integrating market-based indicators. Additionally, legal and tax considerations – such as the absolute priority rule, withholding tax exemptions, interest payments for income tax purposes – are addressed. If enhancing the loss-absorbing function of AT1 bonds on a going-concern basis proves unfeasible without introducing excessive complexity, banks may ultimately have no choice but to accept a simpler and more effective alternative: raising common equity tier 1 capital requirements.