2023 Banking Crisis

[DevilPlate]

Of course la. If I am the CEO, I also buy now. Later any issue I can exit first mah. By the time I exit, too late for retail investors. See those clowns who encourage all these crypto. They didn’t get burn, their supporters got burnt.

Clowns = Ytuber?
They might do crypto videos but they never buy also u duno.
I just look at their data presented (also need to verify) and ignore their opinions.

CEO yes, they run road first like SVB CEO and management staff.

 

[elvintay07]

Clowns = Ytuber?
They might do crypto videos but they never buy also u duno.
I just look at their data presented (also need to verify) and ignore their opinions.

CEO yes, they run road first like SVB CEO and management staff.

They don’t run first then I worry.

 

[elvintay07]

Don't know how many SVB clients will stick with the bank. For me, I would say thank you FDIC, withdrawal all my savings and park it somewhere else.

If people don’t do that then I worry. Of course do that is better. Else how to have slim chance to make JP Morgan, Bank of America bankrupt.

 

[final1]

I did already say on Monday.
"Does it portend bigger things to come?"
Credit Suisse next to go?

The FED and the Treasury have been doing a good job? Well-done?
Following textbook economics is a job well-done?
Bailing out depositors AFTER THE FACT is a good idea?
I really laugh till my sides ache.

 

[chiokcc]

 

[elvintay07]

If people don’t do that then I worry. Of course do that is better. Else how to have slim chance to make JP Morgan, Bank of America bankrupt.

Lai liao. I think this one is the biggest tsunami! https://www.reuters.com/business/fi...7-bln-bonds-zero-angering-holders-2023-03-19/

 

[BBCWatcher]

Now that's news! I can't remember a time when stockholders ranked ahead of bondholders in a distressed, government brokered acquisition like this, but here we are.

Are you holding low or medium ranking bank bonds? A lot of Singaporeans are. I'd take a fresh look at your bond portfolio and reassess its risk profile in light of this zeroing out of Credit Suisse's AT1 bonds. If the Swiss National Bank can do it then it's probably precedent for other central banks.

 

[BBCWatcher]

If there's a moderator who can change this thread's title to "2023 Bank Failures" that'd be terrific. Thanks.

 

[final1]

US futures still red red red after credit suisse 'rescue'.
lmao. Refer to post #144 and the one before that.

 

[tmkedmw]

US futures still red red red after credit suisse 'rescue'.
lmao. Refer to post #144 and the one before that.

Moi post CS in #122 and #123 last wed.
Gg by Sunday. Haiz

 

[lzydata]

If there's a moderator who can change this thread's title to "2023 Bank Failures" that'd be terrific. Thanks.

TS can do that.

 

[boringLife-]

But it is not the entire bondholders who are wiped out right? It is only the AT1 issue that is gone

 

[BBCWatcher]

US futures still red red red after credit suisse 'rescue'.
lmao. Refer to post #144 and the one before that.

S&P 500 futures are pointing to a ~0.50% fall in that index at market open. That's a perfectly ordinary and boring day on Wall Street.

Are you watching CNBC by any chance? I'd turn off the financial p**n. It's better for your health and wealth.

But it is not the entire bondholders who are wiped out right? It is only the AT1 issue that is gone

I'm not sure, but I believe you're correct. Even so it looks to me like there are many Credit Suisse bondholders who still want to get rid of their bonds at desperation prices across the board. That might be because there are portfolio managers who now have no choice based on their funds' investment rules.

If you're really brave then you might consider buying some of these non-AT1 distressed Credit Suisse bonds. I'm not that brave.

 

[di_andrei]

But it is not the entire bondholders who are wiped out right? It is only the AT1 issue that is gone

It's only this specific type of Contingent Convertible:
https://www.investopedia.com/terms/c/contingentconvertible.asp

 

[lzydata]

Global Investments Limited announces it has 2.33% of its NAV worth of Credit Suisse AT1 bonds.

https://links.sgx.com/FileOpen/011_...OUNCEMENT.ashx?App=Announcement&FileID=750399

 

[boringLife-]

It's only this specific type of Contingent Convertible:
https://www.investopedia.com/terms/c/contingentconvertible.asp

I am sure the prospectus of the AT1 allows CS & the regulator to do that. It is probably also the basic function the AT1 is supposed to do in the first place.

So is it a case where investors just don't know what they are buying into, irregardless of how sophisticated they might be.

 

[BBCWatcher]

Credit Suisse‘s bondholders and shareholders are likely to file lawsuits.

 

[limster]

in America you got no-win no-fee lawyers, so bondholders got nothing to lose since written down to 0$

 

[BBCWatcher]

in America you got no-win no-fee lawyers, so bondholders got nothing to lose since written down to 0$

We don’t know what the arrangement will be between possible plaintiffs and their legal representatives, but that’s not really it. The potential for recovery of even a small fraction of US$17 billion is more than ample incentive here. Circa US$3.2 billion is on the table at least since that’s what stockholders are supposed to get. Would you pay for a lawyer if you had a 10% chance of getting US$3.2 billion? I think I would if I could afford it. These plaintiffs presumably can.

Some holders of Argentina’s sovereign debt won in court. It can happen. It doesn’t mean these bondholders will, but this situation seems to be unprecedented. I don’t think there’s ever been another case like this where stockholders outranked bondholders. The prospective plaintiffs have novelty in their favor.

 

[highsulphur]

Works for the GFC. Will work again