Credit Suisse got a credit line with Swiss National Bank who also offered to buy back some of their senior bonds.

NY Credit Suisse bonds are currently 12% YTM in 17 months.
London bonds are currently 16% YTM

Worth the risk?

ETA- I see now that expectations are that Credit Suisse gets taken over by UBS. I do not know if the debt has change of control provisions or not. Probably safer to stick with playing the equities side of things.

Feeling good about my decision to sit this one out.

https://www.wsj.com/articles/credit-suisse-bond-wipeout-threatens-250-billion-market-10be7d04

Bullet dodged!

welcome.

I think it's possible that this is all by design so that these banks can erase billions of dollars worth of bonds. They know that the people are going to bail them out if they fail, so why not take the risk that? If you're successful, you get to eliminate a huge amount of bond debt. Billions of dollars. If you're not successful, the general public bails you out with the government. Everyone working for the bank (at a high level), get a golden parachute after Credit Suisse gets bought out by UBS.

AT1 bonds had a specific provision that allowed for the zero to occur.

Cyp0111 said:

---

AT1 bonds had a specific provision that allowed for the zero to occur.

---

Do you think that is the same in Zrich?