Bondholders in an otherwise well-capitalised bank being wiped will be interesting. It makes sense. But it also means you should dump bank debt, even if the bank is safe, if they’re vulnerable to idiot Saudis mouthing off.
https://www.reuters.com/business/finance/credit-suisse-write...
Of course, I can't blame anyone. Its easy for me to say anything chilling on a couch behind a screen. Cant imagine the stress the regulators and board went through to get this out before monday morning to plug the disaster waiting to happen if CS just went belly up blocking businesses and everyone involved with CS.
Lets hope this stops soon.
It does look a bit like they have just done the full cycle of insolvency to bankruptcy to selling off the pieces and distributing the proceeds in a 48 hour window. UBS are (effectively) not buying "Credit Suisse", they are buying the post bankruptcy assets (which somehow had a market cap of ~7bn at the close of market trading and Friday).
Obviously for a to-big-to-fail bank you cant go through all the steps.