The End of Credit Suisse!
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Published 2023-03-22
After a weekend of intense negotiations, Swiss authorities brokered an emergency deal to sell Credit Suisse the troubled 167-year-old investment bank to its Swiss rival, UBS. A $54bil lifeline from the Swiss National Bank last week failed to stem the crisis facing Credit Suisse following Silicon Valley Bank’s collapse: its share price collapsed and the flight of deposits accelerated. The deal has prevented a globally important bank from failing.
Under the terms of the deal, Credit Suisse’s additional tier 1 (AT1) bonds were written down to zero while shareholders received $3.25bn. In today's video we discuss whether that is fair and who owned those bonds.
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All Comments (21)
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This is a terribly sad day, Patrick will no longer have opportunity to mock credit suisse future displays of incompetence. 😢
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I can't believe Patrick bullied them into bankruptcy.
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We can only imagine how joyful and enthusiastic are UBS employees now they're looking in Credit suisse books and finding the wonderful legacy they'll have to manage in the next few months to save their own job.
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This coverage is so much more complete then the regular news that isn't behind a paywall. Thanks!
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"Here is a chart of these bonds. They went to zero." Hahahha
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Any bank deemed too big to fail should immediately be broken up.
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Wow, I didn't realize that there are people on YouTube who discuss finance at this level and with such clarity at the same time. Thanks for the entertaining and insightful video 👍
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As a brand new UBS share holder, I’ve got a 50% haircut to recoup. Let’s go UBS, there’s an entire world full of shifty financial deals to be made. 😜
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reminds me of McDonnell Douglas/Boeing deal, where the people who ruined McDonnell then inserted themselves into Boeing and then ruined that. IMO UBS just poisoned themselves.
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Amazing commentary as always with a generous dose of sarcasm. Does Patrick use a teleprompter? His delivery is articulate, friction free and relaxed at all times.
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I bet Patrick has known this video has been coming for a while
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I seriously love the idea of the AT1 bonds being paid to high-level execs instead of most of the cash. Maybe give them a 10 year maturity instead of 5 and you've got the perfect motivator to run the bank well in the long run - run the bank well and you'll get solid interest payments AND the principal eventually. Run it into the ground and the most you can get is a couple year's worth of interest payments.
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really funny that bankers and VC bros are acting like interest rate risk management is an alien concept
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Professional investor: “What?? Zero? Who reads the fine print??”
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Lmao, i cant get over how happy Patrick looks in the Thumbnail Next to the text "The end of Credit Suisse!"
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"This is no bailout !" the Swiss finance minister was quoted as saying at 11:06 . This is what we prefer to call: "A very large bilge pump." 😜 Thanks for the video Patrick ! This episode was another fine example of how chasing bond yields can be an excellent way to get the same risks as equity investments but with a nice cap on their potential for gains
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This is definitely my favourite AI generated character.
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I really enjoy Patrick's more humorous and yet accurate take on topics. The tone is way better than a years ago when he just explain things without the humor. I notice the change with humor when he started explaining FTX collapse.
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The problem with regulators is they claim people should trust them while simultaneously claiming they have to lie to people for the greater good.
