The Costly Collapse of Credit Suisse's Bonds.
TL;DR Summary
Credit Suisse's $17 billion worth of "CoCo" bonds, designed to give banks a financial cushion in the event of a severe setback, were marked down to zero as part of the bank's acquisition by Swiss rival UBS, engineered by the Swiss government to prevent a financial crisis. The move has angered bondholders, who regarded the bonds as extremely risky investments, while Credit Suisse shareholders received shares in UBS.
- Why $17 billion in Credit Suisse bonds became worthless The Washington Post
- Credit Suisse Sets a Frightening Precedent for $250 Billion in Bonds Barron's
- Hedge Funds That Bet on Credit Suisse Rescue Face Uneven Results The New York Times
- UBS Got Credit Suisse for Almost Nothing Bloomberg
- Bank rescue as insurance The Economic Times
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