Credit Suisse is about four times bigger than Silicon Valley Bank by some financial measures. It is one of the 33 largest banks in the world.
It is at risk and the Saudi National Bank is limiting its ownership to just under 10%.
The Swiss National Bank and the country’s regulator FINMA said Credit Suisse meets the capital and liquidity requirements imposed on systemically important banks and that the SNB will provide the bank with liquidity if necessary, in a statement. (BBG) pic.twitter.com/wWJaHT8CU7
— Holger Zschaepitz (@Schuldensuehner) March 15, 2023
WTF? The markets are now pricing in a probability of default of 47% for Credit Suisse. What have I missed? pic.twitter.com/Q2MMo0T3LV
— Holger Zschaepitz (@Schuldensuehner) March 15, 2023
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Credit Suisse, manages around $1.47 trillion worth of assets. $1.47 trillion is par value. Thirty year government bonds with negative interest rates are worth how much in a panic sale? Credit Suisse should pay the buyer to take ownership of the loss.
Oddly enough many are buying US Treasury bonds in a panic flight to safety. US Treasury bonds face the same losses. US banks own those losses. I certainly never bought a US Treasury bond paying 2% interest when I knew inflation was far higher than 2%. Even today US Treasury bonds pay 5% while the government admitted to 8.9% inflation and the truth is far higher. US Treasury bonds are a scam. Only a banker would buy one.