Why Credit Suisse’s share price fell as much as 31%

The Credit Suisse’s stock price declined as much as 31%, touching record lows, and prices on its benchmark bonds fell to levels that designate the bank is in deep financial stress. Something rarely has been seen at a major global bank since the 2008 crisis. For now, banks that trade with Credit Suisse retorted up contracts, known as credit-default swaps, that will pay them off if the crisis extends.

This comes after a statement issued by its top shareholder, the Saudi National Bank, declined to provide it with fresh funding because of regulations that cap its interest in Credit Suisse to 10%, and currently, it is holding 9.9%.

Today the bank has announced that it is taking critical action to support its liquidity by borrowing up to $54 billion from the Swiss central bank after a crash in its shares increased fears about a broader bank deposit crisis.

Also Read: Silicon Valley Bank Collapse; What Happened?

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com