Fast Take
- As UBS purchased out Credit score Suisse for $3.2 billion yesterday, shares head decrease in pre-market strikes.
- This can be a 73% low cost on Friday on Credit score Suisse’s closing worth.
- The most important losers of this commerce have been the holders of Further Tier 1 (AT1) bonds. This a debt instrument the place holders are repaid earlier than shareholders.
- However that didn’t occur as Credit score Suisse confirmed shareholders would get $3 billion, and $17 billion of AT1 holders would get nothing.
- In a Bloomberg article.”Wiping out AT1 holders whereas paying substantial quantities to shareholders goes towards all of the worldwide decision rules and guidelines agreed upon after 2008.”
- May different international locations repeat the identical as what the Swiss authorities did?
Pre Market Strikes
- UBS: -4%
- Credit score Suisse: -7%
- First Republic: -33%
- Deutsche Financial institution: -2%
The publish Guidelines For Thee however Not for Me: Holders of AT1 Credit score Suisse bonds get nothing as shareholders get billions appeared first on CryptoSlate.
