Source: Bloomberg
A class of bonds issued by Creditkin Group are issuing warnings to remind the market that the Swiss Central Bank thrown by the market may not be enough to stabilize this trapped bank.
The nearly 76 billion Swiss franc (82 billion US dollars) bonds and additional first-level capital (AT1) bonds of nearly 76 billion Swiss francs ($ 82 billion) have fallen to the level of the company's plight.According to FINMA's regulations of the Swiss financial regulatory authorities, if regulatory agencies will protect Credit Subtractors, AT1 bonds will be canceled (Written OFF), and internal bonds will be converted into equity.If Creditette's capital adequacy ratio is lower than the predetermined level, you can also reduce AT1.
European countries and Switzerland officials launched internal bonds after the European debt crisis to ensure that taxpayers will not bear losses before investors.AT1 bonds appeared after the global financial crisis.
Although the internal bonds have risen on Friday, the price is still at the level that reflects the serious bad situation of the issuer. In October 2026, the billing price of 2.125%of the ticket rate at 2.125%was only 66%of the face value.At the same time, the bonds that were issued by Creditkin, which were not affected by such losses, and the bank's announcement that the bonds that the bank announced their repurchase would increase on Friday. In April 2026, the bond transaction price of 1.5%of the interest rate at 1.5%was close to 82%of the face value.
Bloomberg Industry Research and Research High Credit Analyst Jeroen Julius said, "Credit Suisse bond prices show that people think that the bank will eventually have a higher possible solution, and bond holders will suffer losses."
On Friday, the US dollar bonds rose, and New York time was 1: 12 in the afternoon, and the face rate of 1.305%due in 2017 was 1.305%of the US $ 1 of the US $ 1, and the transaction price was 64%of the face value.
Creditette's stock price fell on Friday, and the stock fell 25%in this turbulent week.According to CMAQ pricing, the bank's bond credit default protection (CDS) cost rose to about 3,000 base points on Friday, but the liquidity fluctuated greatly.People familiar with the matter revealed that the UBS and Creditses Group opposed the idea of forcibly merging them, even if this was one of the government's consideration options.
ING Bank's senior credit analyst SUVI Platerink Kosonen pointed out that "the expansion of the internal bond spread reflects that the market is concerned about bank health."
According to the data of Julius of Bloomberg industry research analysts, if the liquidity provided by the central bank is considered insufficient, or the Swiss government requests to immediately implement solutions that may lead to spin -off to protect Credit CITS's domestic banking business, the bank's bankThere may be internal bailout.
Creditver has 35 billion Ruisan's ordinary equity first -level capital (CET1), which will be the first buffer belt to bear the loss in any intervention situation, followed by 16 billion Swiss francInternal bonds of 59.8 billion Swiss francs.In addition, Credit Suisse also has a small number of older second -level capital bonds that may be affected.
A Spokesurgical spokesman refused to comment on the internal bonding bonds, but mentioned recently that Creditkin's statement of increasing liquidity and repurchase bonds was mentioned in the near future.He also emphasized the support from the National Bank of Saudi Arabia and Switzerland.Swiss regulatory authorities said that Credit Consistence meets the stricter capital and liquidity requirements for systemic importance banks.Credit Suxel Lehmann has denied that he will accept government assistance on Wednesday.
Buy safe debt
People familiar with the matter revealed that some creditors of Creditses are actually buying the bank's safest bonds. They believe that the Swiss Central Bank's intervention is an opportunity to buy.
Sources said that these investors bought the highest priority bonds issued by Creditses through operating the company.Investors believe that once the regulatory authorities intervene in the protection store, the risk of such bonds is lower than other bonds of Credit.As the person who has not been authorized publicly commented, people familiar with the matter asked for anonymity.
John Taylor, a European investment group manager, said, "Credit Suisse's capital is in good condition, and the liquidity ratio is higher than the lowest requirements of the regulatory authorities. The current question is whether the market has confidence. I have not seen deposit outflows."
Creditette's capital adequacy ratio is much higher than the 7%threshold for triggering the 7%of the cancellation of AT1 bonds.As of the end of 2022, the bank's CET1 ratio was 14.1%. This week, investors stated that it plans to maintain the ratio of at least 13.5%by 2025.
Keefe, analysts of Bruyette Woods said this week that the liquidity support measures provided by the Swiss Central Bank can only make Credit Credit, splitting is its most likely ending.
