And for the most unsurprising news of the day, the holders of Credit Suisse AT1 bonds are miffed that they got wiped out while the stockholders did not.
So is this just a European situation, or is there an equivalent bond in the US that also would be wiped out before stocks?Also, I hear that the Fed is allowing banks to sell their undervalued bonds through its discount window in a way that effectively just adds to the money supply - therefore, more inflation.
I’m looking forward to your next column digging into the latest developments!
And for the most unsurprising news of the day, the holders of Credit Suisse AT1 bonds are miffed that they got wiped out while the stockholders did not.
https://archive.md/EUlE5
Normally bondholders come ahead of stockholders.
With a mouse click the Swiss regulator FinMa managed to throw shade on the entire $275 Billion market in AT1 bonds.
And they wonder why these shotgun weddings don't solve anything.
So is this just a European situation, or is there an equivalent bond in the US that also would be wiped out before stocks?Also, I hear that the Fed is allowing banks to sell their undervalued bonds through its discount window in a way that effectively just adds to the money supply - therefore, more inflation.
I’m looking forward to your next column digging into the latest developments!
Yikes, just yikes.