{"id":327,"date":"2023-03-16T07:01:53","date_gmt":"2023-03-16T12:01:53","guid":{"rendered":"https:\/\/enjoyingthisjourney.com\/credit-suisse-stock-surges-32-after-swiss-national-bank-loan-debt-buyback\/"},"modified":"2023-03-16T07:01:53","modified_gmt":"2023-03-16T12:01:53","slug":"credit-suisse-stock-surges-32-after-swiss-national-bank-loan-debt-buyback","status":"publish","type":"post","link":"https:\/\/enjoyingthisjourney.com\/credit-suisse-stock-surges-32-after-swiss-national-bank-loan-debt-buyback\/","title":{"rendered":"Credit Suisse Stock Surges 32% After Swiss National Bank Loan & Debt Buyback"},"content":{"rendered":"

Shares in Credit Suisse surged 32% at the start of trading in Zurich on Thursday, after the bank announced it would tap a loan from the Swiss National Bank and launch an offer to buy beaten-up debt.[0]<\/a><\/sup> The second-biggest Swiss lender said it would use a 50-billion-franc ($54 billion) facility from the country\u2019s central bank in what it called \u201cdecisive action\u201d to strengthen its liquidity.[1]<\/a><\/sup><\/p>\n

The announcement follows the failure of Silicon Valley Bank, the second-largest US bank failure ever, and the closure of Signature Bank and wind down of Silvergate Bank, which have caused investors to brace for a full-blown crisis in the sector.[2]<\/a><\/sup><\/p>\n

The Swiss National Bank confirmed Thursday that it will provide liquidity to Credit Suisse \u201cagainst sufficient collateral,\u201d prompting talk with the Swiss National Bank and financial regulator FINMA.[3]<\/a><\/sup> In addition, Credit Suisse also said it would buy back 3bn Swiss francs worth of its debt.[4]<\/a><\/sup><\/p>\n

Neil Shearing, chief economist at Capital Economics, commented that \u201cthe problems at Credit Suisse are very different to those that brought down SVB a few days ago. But they serve as a reminder that as interest rates rise, vulnerabilities are lurking in the financial system. Key areas to monitor are smaller European banks and shadow banks.\u201d[5]<\/a><\/sup><\/p>\n

Credit Suisse\u2019s stock crash on Wednesday, falling as much as 30%, has caused concern over the health of global banks.[6]<\/a><\/sup> The Swiss bank's decision to borrow from the Swiss National Bank and buy back its own debt has helped to calm investors\u2019 nerves.[4]<\/a><\/sup><\/p>\n

0. <\/span>“Stock Market Today: Credit Suisse Shares Leap; Dow Futures Edge Down” The Wall Street Journal, 16 Mar. 2023, https:\/\/www.wsj.com\/livecoverage\/stock-market-news-today-03-16-2023<\/a><\/p>\n

1. <\/span>“Credit Suisse, Snap, Adobe, UiPath, and More Stock Market Movers” Barron's, 16 Mar. 2023, https:\/\/www.barrons.com\/articles\/stock-market-movers-350a5c<\/a><\/p>\n

2. <\/span>“Credit Suisse just the ‘tip of the iceberg' amid SVB fiasco: JPMorgan” Markets Insider, 15 Mar. 2023, https:\/\/markets.businessinsider.com\/news\/stocks\/svb-bank-crisis-credit-suisse-jpmorgan-stock-market-outlook-contagion-2023-3<\/a><\/p>\n

3. <\/span>“Nouriel Roubini says Credit Suisse may be too big to save, risks ‘Lehman moment'” Markets Insider, 15 Mar. 2023, https:\/\/markets.businessinsider.com\/news\/stocks\/nouriel-roubini-credit-suisse-too-big-to-save-lehman-moment-2023-3<\/a><\/p>\n

4. <\/span>“Credit Suisse shares surge after bank agrees \u00a344bn lifeline \u2013 business live” The Guardian, 16 Mar. 2023, https:\/\/www.theguardian.com\/business\/live\/2023\/mar\/16\/credit-suisse-borrowing-liquidity-swiss-francs-central-bank-ecb-lagarde-jeremy-hunt-business-live<\/a><\/p>\n

5. <\/span>“Credit Suisse's $50 billion lifeline calms panic over banks” CNN, 16 Mar. 2023, https:\/\/www.cnn.com\/2023\/03\/16\/investing\/credit-suisse-snb-loan-shares\/index.html<\/a><\/p>\n

6. <\/span>“Credit Suisse Teeters as Shares Slide 30 Percent” The Daily Beast, 15 Mar. 2023, https:\/\/www.thedailybeast.com\/credit-suisse-teeters-as-shares-slide-28-percent<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Shares in Credit Suisse surged 32% at the start of trading in Zurich on Thursday, after the bank announced it would tap a loan from the Swiss National Bank and launch an offer to buy beaten-up debt.[0] The second-biggest Swiss lender said it would use a 50-billion-franc ($54 billion) facility from the country\u2019s central bank […]<\/p>\n","protected":false},"author":2,"featured_media":326,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/posts\/327"}],"collection":[{"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/comments?post=327"}],"version-history":[{"count":1,"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/posts\/327\/revisions"}],"predecessor-version":[{"id":328,"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/posts\/327\/revisions\/328"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/media\/326"}],"wp:attachment":[{"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/media?parent=327"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/categories?post=327"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/tags?post=327"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}