The End of Credit Suisse!
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2023-03-22に共有
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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コメント (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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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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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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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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Any bank deemed too big to fail should immediately be broken up.
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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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I bet Patrick has known this video has been coming for a while
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Excellent video Patrick. As an experienced Swiss banker living in Switzerland I found your message comprehensive, well balanced, and I learned the fundamental reason why AT1 bond holders could be treated worse than equity holders. As I don’t invest in this type of instruments I didn’t take the time to go analyse the question but you clarified for me a central legal question. Thank you.
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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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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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"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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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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Swiss Regulators have already stated all employees, incl management will get 0 due bonuses (cash included). While I praise this, expect the best and brightest to be going elsewhere quickly. I expect the Credit Suisse brand to become a retail banks and split off, along with other unwanted parts and the crown jewels to be brought into UBS proper.
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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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It's a tragic day indeed, We've just witnessed the death of a financial meme. R.I.P. Credit Suisse 1856-2023 †
