{"id":330,"date":"2023-03-16T08:02:28","date_gmt":"2023-03-16T13:02:28","guid":{"rendered":"https:\/\/enjoyingthisjourney.com\/credit-suisse-stock-surges-after-swiss-national-bank-loan-and-debt-buyback-announcement\/"},"modified":"2023-03-16T08:02:28","modified_gmt":"2023-03-16T13:02:28","slug":"credit-suisse-stock-surges-after-swiss-national-bank-loan-and-debt-buyback-announcement","status":"publish","type":"post","link":"https:\/\/enjoyingthisjourney.com\/credit-suisse-stock-surges-after-swiss-national-bank-loan-and-debt-buyback-announcement\/","title":{"rendered":"Credit Suisse Stock Surges After Swiss National Bank Loan and Debt Buyback Announcement"},"content":{"rendered":"
Shares of Credit Suisse surged Thursday after the bank said it would tap a loan from the Swiss National Bank, followed by an announcement it would buy back 3 billion Swiss francs worth of its debt.[0]<\/a><\/sup> The loan from the Swiss National Bank, which is worth 50 billion Swiss francs ($54 billion), is part of the bank\u2019s plan to strengthen its liquidity and shore up investor confidence.[1]<\/a><\/sup><\/p>\n The stock surged 32% in opening trade, rallying as the Swiss banking giant said it would tap its central bank for 50 billion francs and launching an offer to buy beaten-up debt.[0]<\/a><\/sup> Credit Suisse\u2019s bonds also rose, but they have a lot of ground to catch up after investor confidence in the bank crumbled this week.[2]<\/a><\/sup><\/p>\n On Thursday, the Swiss National Bank declared that it would offer liquidity to Credit Suisse, subject to the provision of appropriate collateral.[3]<\/a><\/sup> This led to a conversation between the Swiss National Bank and the financial regulator FINMA, who announced last evening that the SNB would supply liquid funds “if needed”.[4]<\/a><\/sup><\/p>\n These measures demonstrate decisive action to strengthen Credit Suisse as it continues its strategic transformation to deliver value to its clients and other stakeholders.[5]<\/a><\/sup> Neil Shearing, chief economist at Capital Economics, wrote in a note to clients that the problems at Credit Suisse are very different to those that brought down Silicon Valley Bank a few days ago.[6]<\/a><\/sup> However, he warned that as interest rates rise, vulnerabilities are lurking in the financial system, and that key areas to monitor are smaller European banks and shadow banks.[6]<\/a><\/sup><\/p>\n At the beginning of trading, an index of Europe's bank stocks increased 3.3%, causing a rally in European bank shares.[3]<\/a><\/sup> Live updates of what\u2019s moving markets, including the Dow, S&P 500 and Nasdaq Composite, are available to track the latest stock market news and in-depth analysis.[2]<\/a><\/sup> The European Central Bank will also announce its interest rate decision later today at 1.15pm GMT.[7]<\/a><\/sup><\/p>\n 0. <\/span>“Credit Suisse shares jump after saying it will borrow from SNB and buy back debt” MarketWatch, 16 Mar. 2023, https:\/\/www.marketwatch.com\/story\/credit-suisse-shares-jump-after-saying-it-will-borrow-from-snb-and-buy-back-debt-27a46b20<\/a><\/p>\n 1. <\/span>“Credit Suisse, First Republic, 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>“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 3. <\/span>“Credit Suisse stocks recover live updates: Swiss National Bank announces support, European markets up” AS USA, 16 Mar. 2023, https:\/\/en.as.com\/latest_news\/credit-suisse-stocks-recover-live-updates-swiss-national-bank-announces-support-european-markets-up-n<\/a><\/p>\n 4. <\/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 5. <\/span>“‘The weakest links are cracking': Investors consider possible Credit Suisse contagion” CNBC, 16 Mar. 2023, https:\/\/www.cnbc.com\/2023\/03\/16\/credit-suisse-investors-wary-of-contagion-amid-banking-crisis-fears.html<\/a><\/p>\n 6. <\/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