Credit Suisse - Is it going to go bust, if so what happens?

[isaldiri]

Newc said:

ATG said:

Newc said:

If you're hankering for some SVB-style portfolio excitement, I see the CS 2026s are trading in the 20's. You might want to re-watch That Scene in Margin Call before lifting the offer though.

20 what? Cents or bips?

There was a print around $22 iirc. So that's what, 60% yield? On a Swiss bank.

"We are selling to willing buyers at the current fair market price."

Quite curious - what was the CS bond (maturity/coupon/entity/currency) that traded at 20s today?

[Newc]

XS0105839269

[NRS]

Newc said:

XS0105839269

Can I do options on top of that to increase my profit? If so what is the max a retail person can do before they get a margin call? That said, I'll need to transfer the money over from my credit card.

[Adam.]

quite the rap sheet

https://www.theguardian.com/news/2022/feb/21/tax-t...

[55palfers]

Adam. said:

quite the rap sheet

https://www.theguardian.com/news/2022/feb/21/tax-t...

Good grief!

What a rap sheet.

And yet little or no prison time for anyone.

[rallye101]

My world class genius mate who worked for them ran for the hills 3 years ago.....reiterating that this was due!
I'm very stupid but recall the conversation with him....

[Adam.]

55palfers said:

And yet little or no prison time for anyone.

notoriously hard to pin it on an individual (apart from the guy who killed himself obv)

SMCR might help that

[Four Litre]

Adam. said:

quite the rap sheet

https://www.theguardian.com/news/2022/feb/21/tax-t...

That’s crazy, but consistent!!

[jules_s]

Four Litre said:

Adam. said:

quite the rap sheet

https://www.theguardian.com/news/2022/feb/21/tax-t...

That’s crazy, but consistent!!

And the 'lessons learned' cliche after almost every one

[Carl_Manchester]

Sometime before 9.40pm GMT, the Swiss regulators statement was made available and it was covered by Reuters here:

https://www.reuters.com/markets/cautious-calm-retu...

[KAgantua]

Holy moly

That escalated quickly!!

[wibble cb]

Nothing to see here, nothing to worry about, but hey, have 54bn USD….it’s almost worse than nothing, as you now have to think what has the Swiss National Bank seen to warrant such aggressive action?

https://www.theguardian.com/business/2023/mar/16/c...

And the chairman is called Lehmann …

Edited by wibble cb on Thursday 16th March 03:36

[easytiger123]

wibble cb said:

Nothing to see here, nothing to worry about, but hey, have 54bn USD….it’s almost worse than nothing, as you now have to think what has the Swiss National Bank seen to warrant such aggressive action?

https://www.theguardian.com/business/2023/mar/16/c...

And the chairman is called Lehmann …

Edited by wibble cb on Thursday 16th March 03:36

I doubt the SNB have seen anything beyond what is already known. They are simply ensuring that the biggest name, in the biggest sector, in a country famed for that sector doesn't become insolvent. They didn't have a lot of choice really. The alternative, especially given I believe something like 1 in 3 Swiss citizens bank with CS, couldn't be allowed to happen.

[Carl_Manchester]

CS has gone bust. it was given a $54bn bailout , end of story ?

[Vanden Saab]

Carl_Manchester said:

CS has gone bust. it was given a $54bn bailout , end of story ?

Is the $54b the amount that people have already taken out or the amount they might be liable to pay out if everybody starts asking or somewhere in-between?

[isaldiri]

Newc said:

XS0105839269

Tks - will have a look.

Carl_Manchester said:

CS has gone bust. it was given a $54bn bailout , end of story ?

The SNB hasn't sunk 54b of equity in CS. Technically it's not a bailout but merely a liquidity line from the central bank. There is a difference.

[Adam.]

isaldiri said:

The SNB hasn't sunk 54b of equity in CS. Technically it's not a bailout but merely a liquidity line from the central bank. There is a difference.

Exactly. CS isn’t bust but it might be if there is a run on the bank and it can’t functional normally. The SNB have stepped in and offered liquidity so CS can fund itself without be charged huge penalties by a sceptical market. All designed to increase confidence.

[Gecko1978]

Adam. said:

isaldiri said:

The SNB hasn't sunk 54b of equity in CS. Technically it's not a bailout but merely a liquidity line from the central bank. There is a difference.

Exactly. CS isn’t bust but it might be if there is a run on the bank and it can’t functional normally. The SNB have stepped in and offered liquidity so CS can fund itself without be charged huge penalties by a sceptical market. All designed to increase confidence.

Iirc RBS got a similar deal (secretly) from the BoE about a month before it fell over £30bn seems to ring a bell

[Digga]

Gecko1978 said:

Adam. said:

isaldiri said:

The SNB hasn't sunk 54b of equity in CS. Technically it's not a bailout but merely a liquidity line from the central bank. There is a difference.

Exactly. CS isn’t bust but it might be if there is a run on the bank and it can’t functional normally. The SNB have stepped in and offered liquidity so CS can fund itself without be charged huge penalties by a sceptical market. All designed to increase confidence.

Iirc RBS got a similar deal (secretly) from the BoE about a month before it fell over £30bn seems to ring a bell

Anyone have the SNB's direct contact? I could do with a couple of million liquidity for sundry expenses.

On another note of amusement, the CS situation has properly put the ECB on the spot regarding base rates. Will they ever be able to revert to 'normal'?

[isaldiri]

Digga said:

Anyone have the SNB's direct contact? I could do with a couple of million liquidity for sundry expenses.

On another note of amusement, the CS situation has properly put the ECB on the spot regarding base rates. Will they ever be able to revert to 'normal'?

liquidity can always be provided if you have a big chunk of collateral lying around if you needed it for sundry expenses...

and what's 'normal' for the ECB? their main financing rate is currently 3% (probably 3.5% in a few hours time). it probably isn't unreasonable to be arguing they already have reverted to normal being already a lot higher than what it has been for the better part of the euro's existence.....