Credit Suisse needs $4 billion; Credit Default Spreads at financial crisis levels

by | Oct 3, 2022 | Resources | 21 comments

Credit Suisse needs  billion; Credit Default Spreads at financial crisis levels

**The more far-reaching Credit Suisse’s strategy is, the more capital will be needed to finance it, a Vontobel analyst says.**

Vontobel expects Credit Suisse to ask shareholders to inject 4 billion Swiss francs ($4.1 billion) as part of its upcoming strategic review, analyst **Andreas Venditti** said in an analyst note Thursday.

Credit Suisse shares were down 19 percent last week after the market was dreading the bank’s shares being further diluted through another capital raise. During Thursday morning trading, shares lost temporarily as much as 5.8 percent, dropping to 3.80 Swiss francs.  

The 4 billion Swiss franc capital raise could be the result of a strategic overhaul that plans high restructuring charges and exit costs of non-core positions.

**Enormous Challenge**

A scenario in which the bank’s expectations regarding the capital it can generate in the current market environment are low, along with potentially less return on parts of the business it aims to sell, all support the case for it turning to its investors for more cash.

With a market capitalization of just under 10 billion Swiss francs, the challenge of raising 4 billion Swiss francs would be enormous. Switzerland’s second-largest bank has announced that it will present its strategic review with 3Q22 results on October 27.

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Credit Suisse needs $4 billion; Credit Default Spreads at financial crisis levels


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21 Comments

  1. BigDapRamirez

    Open a line of credit with them and max it out for free money before bankruptcy.

  2. andy_bovice

    Call me when its a catastrophe

  3. Chgralac73

    no problem. switzerland central bank has 860 bil of foreign reserves, they can loan them money easy peasy

  4. GodfatherOfficial

    And before you know it, bailed!

  5. Interpol68

    Hwang in there for another day CS.

  6. ncsupb

    Where do I buy puts?

  7. jchenn14

    When should I call my mom

  8. illiterate2read

    Not quite a zombie firm, but getting there. So much pain in store

  9. BLAKEEMM

    Puts on DB and Goldman
    How do I buy puts on wedbush??

    They are long tsla, aapl, costco

  10. Awkward-Ring6182

    Puts at 3 .04/contract look enticing

  11. sendokun

    Well….no worry, even if the money runs out, they still got those Jewish gold they got from helping the nazi. They will be fine,

  12. wutangfinancial88

    If y’all remember the “flying bank” (SwissAir), this could go down in a similar fashion. Government bailout, restructuring, consumers get hosed, then things return to normal. Not much meat on the bone on CS and it’s a dangerous short if they announce a bailout. I’ll pass.

  13. Fit-Boomer

    I am planning on buying some shares on Monday morning.

  14. faratto_

    4bilion maybe would be enough to continue an another month

  15. heretorobwallst

    Maybe credit suisse should not have shorted GME for $4 billion?

  16. Reel-Reel-Reel

    So, they are insolvent. I am sure the 1% keep their tax free money there.

  17. Dry_Armadillo_2092

    What can bill do for you …

  18. MadSmatter

    Damned if you do (print more money to save failing banks) damned if you don’t (stop printing money that kills your working class)

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  20. XANDER-HANK-OF-THE

    4 bill not that much

  21. Better_Patience_4640

    Joe Biden and his cronies will bail them out with our money. Probably take an extra 20% of what’s needed for there own pockets.

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