CI GAM Fixed Income Commentary: Credit Suisse
Duncan Presant - Mar 22, 2023
Credit Suisse Bank Run, Acquisition by UBS and FINMA AT1 Decision March 2023 has been a volatile period for banks.
Credit Suisse Bank Run, Acquisition by UBS and FINMA AT1 Decision March 2023 has been a volatile period for banks, initiated by a historically fast bank run on Silicon Valley Bank (SVB), with contagion risk spreading to other firms, including Signature Bank, First Republic Bank, and other U.S. regional banks. This banking fear and uncertainty spread to European markets and was compounded by a March 9, 2023, announcement by Credit Suisse that it would have to delay its 2022 Annual Report to March 14. Credit Suisse depositors feared for the worst, and began to withdraw their deposits, forcing Credit Suisse to announce on March 15 their use of a CHF 50 billion liquidity facility provided by the Swiss National Bank, Switzerland’s central bank. Despite this liquidity backstop, withdrawals continued through the rest of the week.
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