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Is Credit Suisse the Next Lehman Brothers?

The Breakdown

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Introduction

A state news service in Australia published an article about the UK bond market and potential systemic weaknesses. An anonymous quote was seemingly based on a narrative angle that didn't make it into the article itself. Online consensus immediately jumped to the conclusion that Credit Suisse was the bank in question. On Friday, Credit Suisse CDS' close near levels reached at their peak during the 2008 crisis. The other market signal people were looking at is stock price. Their stock had fallen by more than 20% in a day on the Friday before last - from five Swiss francs to below four.

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