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UBS will pay more than $3 billion for Credit Suisse and assume up to $5.4 billion in losses, while the Fed, ECB and other central banks issued statements to reassure markets walloped by a banking crisis that started with the collapse of two regional U.S. banks.
Anche l’allarme sui tagli occupazionali in caso di acquisto da parte di Ubs potrebbe essere stato sollevato per far accettare la nazionalizzazione come ultima ratio
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UBS will pay more than $3 billion for Credit Suisse and assume up to $5.4 billion in losses, while the Fed, ECB and other central banks issued statements to reassure markets walloped by a banking crisis that started with the collapse of two regional U.S. banks.
...Despite that prospect, bond investors are hopeful that a takeover by UBS would mean their Additional Tier 1 bonds are converted into UBS stock and more of their money protected, two bondholders told Reuters.
"If Credit Suisse fails, that would pose a significant systemic issue for bondholders, as it would be hard for them to stomach the failure of a bank when it’s not sitting on unrealized investment losses like in the U.S.," said Jerome Legras, head of research at Axiom Alternative Investments, an investor in Credit Suisse’s AT1 debt...
UBS will pay more than $3 billion for Credit Suisse and assume up to $5.4 billion in losses, while the Fed, ECB and other central banks issued statements to reassure markets walloped by a banking crisis that started with the collapse of two regional U.S. banks.
FRANKFURT (Reuters) - Swiss authorities are examining imposing losses on Credit Suisse bondholders as part of a rescue of the bank, two sources with knowledge of the matter said on Sunday.
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A final decision, however, had not been taken and the terms could still change, according to the sources.
Losses on bondholders could need to be larger if Credit Suisse were wound down rather than if it were taken over by UBS, one of the sources said. Authorities are trying to engineer a UBS takeover of Credit Suisse before financial markets reopen on Monday.
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Despite the prospect of losses, bond investors are hopeful that a takeover by UBS would mean their Additional Tier 1 bonds are converted into UBS stock and more of their money protected, two bondholders told Reuters.
The price of Credit Suisse's Additional Tier 1 bonds jumped in limited Sunday trading after the Financial Times reported that UBS had offered $1 billion to buy its rival, one of the investors said.
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