Banks: The Big Picture
The Macro Trading Floor
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The Impact of Equity Injections on Cross-Attendance Appetite
Credit Suisse has been bought by UBS for a three billion something dollar equivalent old shared deal. It looks on the surface like a pretty decent deal, or at least a government engineered deal to make it convenient for UBS to say yes. But what people are getting spooked about is this waterfall treatment and you get equity investors left with some small residual value in their stock investments of credit Suisse. What I struggle with is how to assess the impact on cross-asset appetite after such an equity injection because I don't think it's worth zero.
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