{"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

7. <\/span>“Futures Rally Evaporates as Banking Woes Linger: Markets Wrap” Yahoo News, 16 Mar. 2023, https:\/\/news.yahoo.com\/bank-fears-rock-markets-traders-223116732.html<\/a><\/p>\n","protected":false},"excerpt":{"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] The loan from the Swiss National Bank, which is worth 50 billion Swiss francs ($54 billion), is part of […]<\/p>\n","protected":false},"author":2,"featured_media":329,"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\/330"}],"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=330"}],"version-history":[{"count":1,"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/posts\/330\/revisions"}],"predecessor-version":[{"id":331,"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/posts\/330\/revisions\/331"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/media\/329"}],"wp:attachment":[{"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/media?parent=330"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/categories?post=330"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/tags?post=330"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}