The global finance industry was put on high alert once again this weekend as Credit Suisse, one of Switzerland’s largest banks, faced a stunning and spectacular fall from grace. Traders and money managers across the world were glued to their mobile phones and laptops, checking in on bond prices and waiting for marching orders. Anxiety levels were high as market closure left traders with little to do except brace themselves for what could potentially be the next and final act of the Credit Suisse crisis.
At the center of the crisis is the concern over how Credit Suisse’s assets will be split apart, and how that split will affect the company’s debt structure. Investors are keeping a close eye on the situation, with many spending their weekend considering possible scenarios, outcomes, and implications. It’s not only Credit Suisse that they are worried about; the situation raises concern about what lies ahead for the broader banking industry and the global economy.
Despite the weekend being one of uncertainty, there were unusual levels of activity in Credit Suisse’s bonds, with some senior bonds being quoted higher by traders. Goldman Sachs and Morgan Stanley were among the bond desks open over the weekend, despite most traders continuing to work from home. While bonds are traded over the counter and can technically be dealt with at any time, it is uncommon for trading to take place over the weekend.
As the market prepares for Monday’s reopening, many are anxiously monitoring the news from their phones. Traders are receiving calls from clients who are looking to do some cherry-picking and taking opportunities, and the general sense of unease around the Credit Suisse situation seems to be growing.
This situation is reminiscent of the time when Russia invaded Ukraine, and people in the market were uncertain about whether interest payments on bonds could be cleared. The feeling among some traders from São Paulo is that it’s like the calm before a tsunami, where the ocean has receded, and the incoming wall of water has yet to crash down.
In conclusion, the situation surrounding Credit Suisse is one that the finance industry is closely monitoring, and the anxiety levels among traders are high. Barring any unexpected developments, the markets will reopen Monday, and we will see the consequences of Credit Suisse’s ongoing crises on the broader finance industry and the global economy.#Credit #Suisse #crisis #fuels #weekend #dread #fear #unknown #unknowns #mounts #among #traders #money #managers