Huvudscenariot är att en systemkris likt 2008 kan undvikas

Det rapporterade priset uppgår endast till cirka 10 procent av Credit Suisses marknadsvärde i början av året vilket reser frågetecken om hur försämrade deras tillgångar bedöms vara. 

En annan faktor är beslutet att till fullo skriva av innehaven i ”Additional Tier 1 (AT1)”-obligationer, vilket skulle kunna påverkade denna tillgångsklass, särskilt om andra institut hamnar i problem. 

DI 20 mars 2023, 08:52

https://www.di.se/live/capital-economics-systemkris-gar-att-undvika/


Risky Credit Suisse Bond Wipeout Upends $275 Billion Market

Holders of AT1 bonds get nothing as shareholders get billions

Investors in a key corner of bank-funding market left reeling

Among the biggest losers in the shotgun sale of Credit Suisse Group AG are investors in the firm’s riskiest bonds, known as AT1s, worth $17 billion. 

These money managers are set to be wiped out — potentially sending that $275 billion market for bank funding into a tailspin

One UK bank CEO put it even more bluntly: The Swiss have killed this key corner of funding for lenders, he said, asking not to be named because the situation is sensitive.

“Wiping out AT1 holders while paying substantial amounts to shareholders goes against all the resolution principles and rules that were agreed internationally after 2008,” according to Jérôme Legras, head of research at Axiom Alternative Investments, who said the firm owns AT1 bonds issued by Credit Suisse.

Bloomberg 20 March 2023

https://www.bloomberg.com/news/articles/2023-03-20/wipeout-of-risky-credit-suisse-bonds-upends-275-billion-market


Why $17 Billion in Credit Suisse ‘CoCos’ or AT1s Got Wiped Out in UBS Takeover

https://www.bloomberg.com/news/articles/2023-03-18/why-credit-suisse-coco-bonds-are-causing-anxiety-quicktake


UBS Group AG is the reluctant rescuer even at a bargain price of roughly $3.25 billion, paid in UBS shares. 

Credit Suisse’s last reported tangible equity value was about $45 billion.

 UBS is picking up its local rival for just 7% of what it should be worth -- and little more than double what Saudi National Bank paid for just a 9.9% stake late last year. 

In addition, $17 billion of junior debt designed to be written down in a banking failure is being wiped out completely. Plus, Switzerland is giving UBS a near-$10 billion guarantee over losses on certain assets, after UBS has taken an initial $5.4 billion of losses.

https://www.svd.se/a/xg91lG/finansmarknadsminister-niklas-wykman-om-ubs-kop-av-credit-suisse



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