Credit Suisse Puts On a Brave Face
Also First Republic, US vs. European regulatory responses, well-timed trades in competitors’ stocks, a Raiffeisen/Sberbank trade and some Signature musical parodies.
I don’t think I’ve ever seen a debt tender offer announced at 2 a.m.? You just fell asleep reading the words “debt tender offer,” didn’t you? Nobody stays up until the wee hours of the morning due to the excitement or urgency of a debt tender offer. But this seems to have hit the wire at 1:45 a.m. Zurich time:
Obviously the main point here is that the Swiss National Bank is giving Credit Suisse a 50 billion-Swiss-franc ($54 billion) line of credit. One thing that this means is that, if depositors run on Credit Suisse asking for their money back, Credit Suisse will have a lot of money to give them. (As of its 2022 annual report it had CHF 234 billion of customer deposits, so the 50 billion from the SNB is a meaningful chunk.)