Credit Suisse’s takeover causes turmoil in a $275bn bond market

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The hastily arranged purchase of Credit Suisse by its rival UBS is reverberating through financial markets

, its great rival, is reverberating through financial markets. Investors are scrambling to understand the deal and identify knock-on consequences. One is already clear. The decision to write down around SFr16bn in Additional-Tier 1 bonds issued by Credit Suisse—while stockholders merely suffered enormous losses—is causing fury and pain elsewhere. Some observers fear it could even spell the end of the asset class.

Credit Suisse’s debt-issuance documents seem to allow for stockholders coming out on top. They note that1 bond buyers have waived any right to reimbursement in a “write-down event”. Yet the idea that stockholders may be left with something and coco holders with nothing is contrary to the understanding many buyers had about what they were purchasing: namely, a hybrid security somewhere between stocks and debt in the stack of capital.

 

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Doubts over UBS rescue amid bond markets turmoil .

Investors will not understand anything, because they are under the influence of forces much greater than themselves.

We already know 💯 short sales of naked shorts 🩳

Same class.

Meh

Take that money and buy BTC.

I wanna see the stuff the Nazis stole that is still in their vaults. Open em up. Time for a fire sale.

Eventually the global economy will collapse for a number of both known and unknown reasons. The political leaders of “democracies” just don’t want to be holding the bag when it does.

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UK regulators back merger of banking giants Credit Suisse and UBSThe Bank of England has told its Swiss counterpart and the country's two biggest banks that it will not object to an emergency merger, Sky News understands. Of course they have .. they're trying to stave of a total collapse of the banking system. PEOWWWW $EURUSD ROCKET TIME, back on course for short term top test. All planned, all this shit. Exactly 👇
Source: SkyNews - 🏆 35. / 67 Read more »