Is Credit Suisse about to blow?
Credit Suisse CDS now at 408. Equity at all time lows. Can the bank stop the decline or is it even threatened with bankruptcy?
The market value of Credit Suisse (CS) is in free fall: at the beginning of the year, the CS share was worth 8.60 Swiss francs, on Thursday afternoon it was less than 2.70 francs - minus 68 percent in eleven months. Even the new strategy with Saudi billions and a restructuring of the investment bank did not help to prevent the share from falling.
Credit Suisse CDS looks fine pic.twitter.com/AQCscrWERs— Dumb Money Smokin’ Jay Powell (@SmokinPowell) November 30, 2022
“Every large financial institution has massive exposure to Credit Suisse. Sure, Credit Suisse will be bailed out - after it blows up. The question remains whether or not the global central banks have quadrillions of liquidity to back stop the global CDS market...” BearTrapsReport wrote
Credit Suisse's CDS has breached its 2008 highs after today's record -$88b outflows. "Crypto" is experiencing explicit default since it can't print dollars - whereas the Swiss National Bank can conjure CHF and other currencies with FX swaps to plug funding stress
1. S&P cuts Credit Suisse Group rating to one step above junk status.— Avi Harkishun (@AviHarkishun) November 3, 2022
- What does this mean for $CS with its Credit Default Swap (CDS) position?
- How will their liquidity be impacted?
- The effect this has in the financial industry due to the network of banks involved in CDS? pic.twitter.com/mUiB6yHwLc