Perhaps one way around this is to invite thoughtful readers to become Honorary Patreons. . Dan Kitwood. Want to learn everything there is to know about stocks? "Credit Suisse has indicated a near-term intention to run with 13 to 14 per cent CET1 ratio, so the second quarter end ratio is well within that range and the liquidity coverage ratio is well . You are about to change the origin location from where you are visiting credit-suisse.com. Sign up for a Trust Bank Account and get: Its worth it in my view, a lot of freebies for very little effort. And for every $1 in short term obligations, Credit Suisse has $1.91 in liquid assets. which measures a bank's Tier 1 capital against its total on- and off-balance sheet exposures, and is designed to highlight any build-up of excessive leverage. DBS's CET1 ratio, for the record, is 14.2%, only slightly better than Credit Suisse. These outnumber the more original articles that initially sparked interest in the site. La scorsa settimana la metrica . The stock has a market cap of $455.42 million, a P/E ratio of 10.67 and a beta of 1.33. I believe it is most helpful when one is direct in providing feedback so I hope you dont mind the bluntness. Please click "Accept" only if you confirm that you reside outside of Canada, Australia, The Hong Kong Special Administrative Region of the People's Republic Of China, South Africa, Japan, USAand any other jurisdiction in which it would be unlawful to receive or view these materials. And even then, there is significant execution risk. For some reason its what the readership seems to want (as reflected by viewcount). Now remember, this is a free market, and CDS are typically only traded by big institutional investors (not retail investors). The Finance You would have senior coverage officer responsibilities for all regulatory engagements for your coverage area (Liquidity, CFO, Data, RRP, Reg Reporting), which includes exams, ongoing monitoring meetings, requests and recurring MI. The firm has a market cap of $13.39 billion, a price-to-earnings ratio of 13.67, a P/E/G ratio of . Move short term cash balances out of Credit Suisse, Nobody wants to lend to Credit Suisse, borrowing costs go up, Because of the plunge in share price, any capital raise would be incredibly dilutive, As things worsen, any further downgrade by clearing houses could increase margin requirements, which exacerbate the issue. This is how investing works. The cost of buying insurance against Credit Suisse defaulting on its debt soared to a record high on Monday, amid fears on . "The bank's cost transformation remains well underway," Credit Suisse said, saying plans already launched will reach most of its 2023 goal to save 1.2 . Credit Suisse Default Explained Is this 2022s Lehman moment? Think about how much you may have lost this year. Financial Horse loves to hear from readers, and can be reached at [emailprotected] SG Invest Bloggers Global regulators require the NSFR to equal or exceed 100%. ;Js#|F2k 3l / FYI We just launched the FH Property Series. Privacy Policy and I have learnt a lot from you, please keep up the good work. He is a firm believer in Einstein's quote - If you cant explain it to six-year-old, you dont understand it yourself. Dont forget, there is also significant execution risk in any turnaround plan. Check out our Stocks Masterclass learn how to pick growth and dividend stocks, how to position size, when to buy stocks, how to use options to supercharge returns, and more! She said Normal academic stream parents were nicer than Express stream parents, as they agreed with everything. (November 2022). I try my best to contribute to the investing community in SG, hope it helps. No research required as these have state sponsors. Reminds me of a Rice Media interview with a teacher. A decade of mismanagement and rock bottom Euro interest rates has done this to what was formerly a very illustrious and respected European bank: A crisis of confidence, into feedback loops. CET 1 ratio, a measure of bank solvency, was 13.8% versus 12.2% a year ago. Is this something that you or really anyone can credibly promise? Thanks, truly appreciate the feedback and sharing! The ingredients of how the market works have changed. Thanks, appreciate the kind words. Because they specialize in gaining a deep understanding of their clients' financial needs, they know that no one's needs are two-dimensional. Financial Horse YouTube Channel C: What, how dare you B disagree with A! With 5 year CDS at 300 bps, it becomes very hard to operate in investment banking. So for what its worth, the risk of short term default by Credit Suisse here is very low. *The location of origin is defined in your browser settings and may not be identical with your citizenship and/or your domicile. The Zurich-based bank's liquidity coverage ratio, which measures the quantity of easily-sold assets available to meet obligations, is currently at 140%, Lehmann said. %%EOF Latest T-Bills at 3.9% yield! Maybe u can talk about defensive stocks to buy for next 5-10 years. Get a free stock and commission free trading with Tiger Brokers. Sumitomo Mitsui Financial Group Inc (SMFG), Banco Bilbao Viscaya Argentaria S.A (BBVA), Grupo Financiero Santander Mexico S.A B De C.V (BSMX), Banco Latinoamericano De Comercio Exterior, S.A (BLX), Credit Suisse Group Current Ratio 2010-2022 | CS. Really full geopolitics in play. Express stream parents questioned her more and debated her positions. So for the record No, Credit Suisse is unlikely to default short term, and no Credit Suisse is unlikely to become Lehman 2.0. Many countries have yet to fully recover from Covid crisis and now we have more global problems. Most of the regular macro updates have moved there. Developing nations may default due to strong dollar. Do note that this is not financial advice. Choice. Credit Suisse said it took "major litigation provisions" of 1.1 billion Swiss francs in 2021. . Thanks for the kind words! Hopefully that would keep the general readers updated on my latest macro views. Liquidity Coverage Ratio Disclosure Report For the Quarter Ended March 31, 2022 Credit Suisse Holdings (USA), Inc. - Or if youre a more advanced investor, check out the REITs Investing Masterclass, which goes in-depth into REITs investing everything from how much REITs to own, which economic conditions to buy REITs, how to pick REITs etc. content . Liquidity Coverage Ratio - 191%. Looking for a low cost broker to buy US, China or Singapore stocks? Never miss another post from Financial Horse! Credit Suisse rose 5.8% to 2.86 francs at 11:51 a.m., paring losses this year to 67%. Interesting articles bring new readers to your site, a reduction of interesting articles would reduce the number of new readers. In fact, the content is not directed to any investor or potential investor and may not be used to evaluate or make any investment. Again, this is among best in class. Many CEOs have tried over the past decade, to very little success. Or Interactive Brokers for competitive FX and commissions. I foresee s&p will go sideways since fed has to raise and reverse rates and maybe print money along the way to fight recession and inflation. It does NOT constitute an offer or solicitation to purchase any investment or a recommendation to buy or sell a security. First published on Mon 3 Oct 2022 02.22 EDT. "The bank's cost transformation remains well underway," Credit Suisse said, saying plans already launched will reach most of its 2023 goal to save 1.2 billion . Which means there are sophisticated players out there who are wiling to pay higher than 2008 prices to insure against the probability of default by Credit Suisse in the next 5 years. How I will invest $1 million in 2023s Market Crash (as a Singapore Investor), Best Fixed Deposit Rates yield 3.9% Better than Singapore Savings Bonds or T-Bills for your cash? We have provided a few examples below that you can copy and paste to your site: Your data export is now complete. Reality Inversion, How to start investing in Singapore in 2020? And I myself have been getting a lot of queries on T-Bills/SSBs, many of which cannot be answered so simply. (Guide). Current and historical current ratio for Credit Suisse Group (CS) from 2010 to 2022. What about UVW stock? Usually, i dont bother to read the comments but somehow end up reading it today. Terms of Use. endstream endobj startxref But tracking it forces rigour, honesty and expertise on your own investing part. . As of June 30, the bank's total assets amounted to CHF727 billion with risk-weighted assets, or RWAs, standing at CHF274 billion, meaning risky assets accounted for 37.73% of total assets. Backlinks from other websites are the lifeblood of our site and a primary source of new traffic. Having said that, I do empathise with your effort to build a side hustle that is fun. Credit Suisse's second-quarter leverage ratio was 6.1%, compared to an average ratio of roughly 4.75% in the rest of the sample, Market Intelligence data shows. latest-news-headlines This ratio is essentially a generic stress test that aims to anticipate market-wide shocks and make sure that financial institutions possess suitable capital preservation, to ride out any short-term liquidity disruptions, that may plague the market.. Compared with other European banks, Credit Suisse has a similar CET1 ratio to the likes of UBS . The company has a debt-to-equity ratio of 0.84, a quick ratio of 1.04 and a current ratio of 1.04. Looking at the bank's capital and liquidity positions, "it is unlikely that Credit Suisse will meet a fate similar to that of Lehman Brothers in 2008," Angelo Ranaldo, professor of systemic risk at the University of St. Gallen, said in a written comment Oct. 3. In fact, the content is not directed to any investor or potential investor and may not be used to evaluate or make any investment. One way to balance this without being overly binary could be to release the Patreon only articles 3 months after they were written. SG Young Investment With capital preservation as much as possible. /marketintelligence/en/news-insights/latest-news-headlines/credit-suisse-s-robust-capital-and-liquidity-suggest-market-fears-overblown-72402827 Lady You Can Be Free This is very strong, and among best in class. Please also see The only thing I can agree with u is we cannot invest like the past 10 years. Click to share on Facebook (Opens in new window), Click to share on WhatsApp (Opens in new window), Click to share on Telegram (Opens in new window), Click to email a link to a friend (Opens in new window). We have provided a few examples below that you can copy and paste to your site: Your image export is now complete. . Please check your download folder. Next T-Bills Auction on 24 Nov (4.0 4.5% estimated yield) Submit Competitive or Non-Competitive Bid? By having the more interesting articles being Patreon only, you lose the wisdom of the community and you do have some thoughtful readers making insightful comments and adding to the discussion in a meaningful way. Credit Suisse First Boston provides securities underwriting, sales and trading, financial advisory, investment research, venture capital and asset management services. Your blog is enjoyable, prob the most enjoyable markets read in Singapore. Probably yet another lost decade for s&p. There are very few Warren Buffetts in this world. endstream endobj 628 0 obj <>/Metadata 26 0 R/Outlines 34 0 R/PageLayout/OneColumn/Pages 625 0 R/StructTreeRoot 55 0 R/Type/Catalog>> endobj 629 0 obj <>/Font<>/XObject<>>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 630 0 obj <>stream Just to share the thinking behind focussing more on T-Bills or SSBs of late for some reason the demand for such content has been very high (in terms of readership). With high inflation, clear indicators like a Fed pivot are no longer possible. Now this decade is high inflation , war, geopolitics all at the highest point!! Highest risk ever globally. Cathie Woods is a good example and more locally, we have seen Forever Financial Freedom and Probutterfly who did well for a few years but are struggling somewhat now. 360? Many credible bloggers do it, such as Breaking the Market. . Despite its current woes, Credit Suisse's liquidity and capital adequacy ratios are unlikely to change materially in the third quarter, Beaumont told Market Intelligence. . Europe will drag the world in recession. Another know-it-alls teaching FH what to do. While this is certainly your prerogative, I would be cautious about killing the golden goose by going too far in this direction. As can be seen below, as of Q2'2022, CS has a CET1 ratio of 13.5% and a liquidity coverage ratio of 191%: CS Investors Relations The minimum capital requirement ("CET1" for CS is 10.5%). It is very relaxing to read your blog on the weekends, when financial markets are closed. I still need to see results first. The Swiss group had the second-highest net stable funding ratio, which measures a bank's available stable funding against its required stable funding and reflects its ability to cover long-term liquidity obligations. Start dumping products issued by Credit Suisse (to avoid counterparty risk), even at a loss. The bank had set a price of 2.52 francs for subscription rights after outlining its turnaround plan in October . Credit Suisse will need to come up with a credible restructuring plan (backed up by capital raise and asset disposal), and they will need to avoid any further rating downgrades and/or crisis of confidence. Credit Suisse Group AG announces successful rights offering There has been a clear shift towards monetizing the site in the past couple of months with the more interesting posts being moved to Patreon only. Actually, why dont u show us the performance of your past portfolio ideas? Forever Financial Freedom Check out theFH Complete Guide to Investing. In fact I think it is not wise to put all your money into stocks just because one guy on the Internet tells you to. Hm alright, let me see how best to implement this going forward if there is demand. I dont profess to be right, and I do change my mind when the facts change. 15 Hour Work Week So it is tough as Singaporean public is largely whiny and unforgiving. It is easy to be right for a couple of years, it is hard to be right over the long-term Realistically, they are likely to have to exit their investment banking business, and transition mainly into private banking. Better buy than Singapore Savings Bonds or Fixed Deposit? Get 100 USD in Apple Shares with Webull, a zero commission broker. Turtle Investor The average daily liquidity coverage ratio (LCR) declined to 140% in 4Q22 (to 11 November) from 192% . Short Term: Mid-Term: Long Term: Trends: Bearish: Bearish . d5L`5@' R!dejH? Common Equity Tier 1 (CET1) ratiocompares a banks capital against its assetsand covers liquid bank holdings such as cash and stock, as well as helping measure the ability of a given bank to withstand stress. Get on your knees to beg forgiveness! P/E ratio 2022: 5,41x: Yield 2022: 3,03%: Capitalization: 20 417 M 21 516 M 21 516 M: EV / Sales . P/E ratio 2022-1,61x: Yield 2022: 1,32%: Capitalization: 8 688 M 9 145 M . Looking for a comprehensive guide to investing that covers stocks, REITs, bonds, CPF and asset allocation? hb```v;B cb600nfc )R* Qg[5:RX(I&|hKn``h`Hb Dp44K H p0}X$j~h.s`XrqK f`9 Credit Suisse on Wednesday reported a net loss for the first quarter of 2022 and announced a management reshuffle. 655 0 obj <>stream Yet, it is hard to be consistently right over the long-term. And how much you will lose in the next 12 months if you start buying too early. The Zurich-based bank's liquidity coverage ratio, which measures the quantity of easily-sold assets available to meet obligations, is currently at 140%, Lehmann said in an interview with . Is that something that would help. | December 9, 2022 . LIQUIDITY COVERAGE RATIO DISCLOSURES For the quarter ended September 30, 2022 1 . If you find this article helpful for you, please do consider signing up for the Patreon subscription. Credit Suisse Starts Growing Liquidity Levels Again: MT. As of the second quarter of 2022, Credit Suisse's liquidity coverage ratio a measure of the share of highly liquid assets held by a bank to ensure its ability to meet short-term obligations was the highest among big European investment banks. What do you think makes a good investor mindset, FH? 05:26a: Deutsche Bank Trims Unilever PT, Maintains Buy Rating: MT. Credit Suisse also outranked all of its comparable European peers it terms of leverage ratio, which measures a bank's Tier 1 capital against its total on- and off-balance sheet exposures, and is designed to highlight any build-up of excessive leverage. The impact of this on the site will not be seen immediately but it will certainly have an impact over the longer term. 06:13a: European Midday Briefing: Stocks Held Back With Focus on US Jobs . They could try asset sales, but when youre bleeding the whole market smells it. Given the bank has indicated a near-term intention to keep its CET1 capital ratio at 13% to 14%, the second-quarter end ratio is well within that range and the liquidity coverage ratio is well . Pls ignore them and continue the good work, wish you a pleasant weekend. That is up from 11.4 per cent in 2015 and 12.9 per cent in 2020, and equates to SFr37bn of capital. It does NOT constitute an offer or solicitation to purchase any investment or a recommendation to buy or sell a security. I was debating with myself for a while whether to write this comment and in the end thought I would do it in the hope that it would be helpful. You spend a lot of time to research and write good articles so it is fair and right that you are compensated for them. Axel Lehmann on Dec. 2. , Bloomberg. As of the second quarter, Credit Suisse's NSFR was 132%. Bullythebear Financial Horse was started to demystify financial investments. (Bloomberg) -- Credit Suisse Group AG Chairman Axel Lehmann said the main indicators of the bank's financial stability were strong and that its level of liquidity is improving after declines in recent weeks. At S$15 a month you get the premium weekly market updates like this one. While Credit Suisse may incur some losses from expected asset sales, the risk of default remains low, according to market observers. Which is why those saying that this is nothing are not correct, something is indeed happening to Credit Suisse here. I do hope to become your patreon in future. However, to pay for your portfolio, you need to do 2 things. Singapore Savings Bonds at 3.26% yield I am buying but why are interest rates down so much? Save my name, email, and website in this browser for the next time I comment. Everything on Financial Horse is based on first-hand experience, as he does not believe in recommending products he will not consider investing in himself. So rest assured that I will try to include more macro based content going forward. You have made some great calls over the last couple of years, especially calling out the market turning point during the pandemic. Investment Moats Players like Credit Suisse couldnt turn around their business in an era of cheap liquidity and rock bottom interest rates, and now they need to try again with higher interest rates, and tighter liquidity. December 2, 2022 - 13:33. They could try debt, but financing costs are likely to be prohibitive. which measures a bank's available stable funding against its required stable funding and reflects its ability to cover long-term liquidity obligations. . Do like and follow ourFacebook and Instagram, or join theTelegram Channel. Do note that this is not financial advice. Market Intelligence "I expect these to remain at around current levels," he said in a written comment. I try my best . Notify me of follow-up comments by email. Current ratio can be defined as a liquidity ratio that measures a company's ability to pay short-term obligations. If you use our datasets on your site or blog, we ask that you provide attribution via a "dofollow" link back to this page. Might be a performance tracking for my current personal portfolio. How else I confirm whether good or not? The war likely will drag on as Russia doesnt seem to give up and is training more troops, Man, where did these trolls come out from, I always enjoy your sharing FH, thanks for doing what you do. As of the second quarter of 2022, Credit Suisse's liquidity coverage ratio a measure of the share of highly liquid assets held by a bank to ensure its ability to meet short-term obligations was the highest among big European investment banks. And you saw recently with SATS what happens when you try to do a big and dilutive equity fundraise in this market. Meanwhile, the share price has plunged 60% this year alone. You will work closely with counterparts in London and Zurich on . Talks of Credit Suisse imploding this week and triggering Lehman 2.0 are alarmist. I like to see what other investors are doing. hVmo8+xkn5]QgDEb?Nrq$[@Hr0,q9mg>0)} &a ``2xdJ)-50)=0i{NSOVCC&yc)thc'_?&k"gW=zoz%F] R9R&AMkTeW_>IgiI{d. View lcr-cs-holding-usa-1q22.pdf from FINANCE FINE32109 at ESSEC. That way, it provides interesting articles for new readers while still providing an advantage for Patreons who can act on the analysis in a timely fashion. The entire capital raising will raise Credit Suisse's CET1 capital ratio by roughly 140 basis points, it said, to around 14% from 12.6% at the end of the third quarter. Perhaps you want to avoid that by not tracking your performance. B: Really? Raleigh, NC. Il liquidity coverage ratio della banca, che misura la quantit di asset facilmente vendibili disponibili per far fronte alle obbligazioni, attualmente al 140%. And that was with a stable company generating good cash flow. For a decade you were able to paper over poor businesses because of favourable liquidity and financing. Global regulators require the NSFR to equal or exceed 100%. And in the absence of a catalyst, its hard to see what can arrest the slide in share price. There is no immediate default risk for Credit Suisse. DBSs CET1 ratio, for the record, is 14.2%, only slightly better than Credit Suisse. There will always be people who would offer differing opinions, but as long as they come from a constructive point of view, we should welcome them. He loves numbers, as do I. Due to legal restrictions, the announcement on the following page is only addressed to, and directed at, persons who reside outside of Canada, Australia, The Hong Kong Special Administrative Region of the People's Republic Of China, South Africa, Japan, USAand any other jurisdiction in which it would be unlawful to receive or view these materials. BTW, as an aside, I am somewhat uncomfortable reading about Dont be penny wise pound foolish. Pa`lRpo00.:` 4 So Credit Suisse is unlikely to get a good price on any of their asset sales in this market. While you would be monetizing existing readers more effectively, over time, the number of new readers would fall, hence reducing the overall potential readership. Its really a falling knife at the moment. Period : Full-screen chart: Technical analysis trends CREDIT SUISSE GROUP AG. . The bank has also issued around 5 billion francs of new debt since Oct. 27, which along with the capital hike has strengthened its spot liquidity coverage ratio to above 140%, it added. Back in 2008 it was about $3 per $100 lent out, but all that has changed post GFC. I think you are able to explain complicated situations in simple terms. There are a lot of bad takes out there, split between: Now the truth rarely lends itself to such simplistic takes. Sri Lanka already did. While Credit Suisse's recent problems were well known and . (24 Nov 2022 Auction Results), FTX goes bankrupt This is a Lehman moment, Top 5 Stocks Bought / Sold by Singapore Investors (November 2022), Carousell fires 10% of staff Read the Memo from the CEO to his employees, Credit Suisse will default and become Lehman 2.0, Credit Suisse is nothing to be worried about, Negative news in the media makes investors worried about Credit Suisse, The CEO sending a memo to employees reassuring of solid liquidity and capital strength only creates more uncertainty. Track your portfolio performance and share it, to show you are in line or outperforming. It is completely free, Karsten has a PhD, works as a quant, and best of all he carries on thought provoking economic discussions with me on email. BUT for the record, the short term risk of default for Credit Suisse, is very low. With their market cap at 10 billion Swiss Francs, thats an equity raise of almost half their market cap. Pubblicato il 02/12/2022Ultima modifica il 02/12/2022 alle ore 12:27 Teleborsa. This article is a premium Patreon article, written on 4 October 2022. As of the second quarter, Credit Suisse's NSFR was 132%. Disclaimer: The content here is for informational purposes only and should NOT be taken as legal, business, tax, or investment advice. Actually my wife and I read FH not only for the blog for many years but the entertaining comments. 1. %PDF-1.6 % Get a free stock and commission free trading with MooMoo. My belief is that better answers come about with robust discussion across different viewpoints and this leads to better answers over the long-term. All are THE best quality investment courses available to Singapore investors out there! T-Bills at 4.0% yield Must buy with CPF-OA? Everything you need to know to buy a property in Singapore, completely free of charge. This creates a buffer of 7.3 percentage points, or CHF20 billion in terms of RWAs, which would be sufficient to capture potential losses from future asset sales, Joost Beaumont, a senior fixed income strategist at ABN Amro said in an Oct. 3 note. As pretty much no one reads comments on old articles, you will probably be one of a few, if not the only one, to read it. Posted: December 10, 2022. hike has strengthened . An analyst could explain further that this means the . The Swiss group's shares and bonds were battered on the markets earlier this month, with credit default swap spreads hitting a decade high as investors rushed to hedge risks ahead of the bank's latest restructuring update expected on Oct. 27. (Bloomberg) -- Credit Suisse Group AG shares surged as much as 10% on Friday after Chairman Axel Lehmann said the bank's liquidity was improving and the huge outflows . 627 0 obj <> endobj I deflussi del denaro dei clienti di Credit Suisse si sono "praticamente fermati", dopo che il colosso bancario svizzero ha registrato 84 miliardi di franchi svizzeri di prelievi di asset dei clienti nelle prime settimane del quarto trimestre, dopo la presentazione . A new investor, Saudi National Bankmajority-owned by the country's sovereign wealth fundhas pledged 1.5 billion Swiss francs (about $1.6 billion) for a 9.9% stake. Check out our guide to the best Crypto Exchange here. Thanks, really appreciate the kind words. Credit Suisse expects a pretax loss of up to 1.5 billion Swiss francs ($1.58 billion) in its fourth quarter as it keeps bleeding cash, the Swiss bank said on Wednesday, shortly before shareholders . Lehmann said the company's liquidity coverage ratio, which measures cash and other . Have one planned for this weekend in fact! Perhaps the bigger problem is that options for Credit Suisse are quite limited. 0 Hmm, have worked in investment houses for 20 years, and daily morning meetings go like this: A: We should buy XYZ stock. Think about how much you may have lost this year. Fitch Ratings-Paris/London-09 December 2022: Credit Suisse faces high execution risks to complete its restructuring plan following today's CHF4 billion capital increase, reflected in the Negative Outlook on its ratings, Fitch Rating says. As of 30 September 2022, the Country Group's average weighted All-CCY HQLA were approximately S$16,368 million, of which approximately 83% (around S$13,576 million) was denominated in SGD. But frankly, the options going forward for Credit Suisse are limited, and not pretty. 2. Mon 3 Oct 2022 14.23 EDT. 1. You can learn from others suggestions and make your own decision, and probably most importantly, learn more about yourself too. The same cannot be said of Credit Suisse. DB USA Corporation U.S. Means a lot. esgSubNav, Discover more about S&P Globals offerings. Means a lot. I write this as a way to be helpful so pls take my comments in this spirit. Looking to buy Bitcoin, Ethereum, or Crypto? Credit Suisse's total loss absorbing capacity, or TLAC, ratio measuring the share of assets eligible to be used to bail in a bank if it runs into trouble was 35.2%, compared to the 27.9% minimum required by Swiss authorities, according to estimates by the fixed-income research team at Dutch bank ABN Amro. hbbd```b``SA$ Credit Suisse's robust capital and liquidity suggest market fears overblown, Insight Weekly: Banks brace for recession; Europe PE deal values soar; US solar imports rebound, Banking Essentials Newsletter: December 7th Edition, According to Market Intelligence, December 2022. Credit Suisse Group AG's capital and liquidity levels compare favorably to those of its peers, S&P Global Market Intelligence data shows, indicating that concerns about the bank's future viability may be overblown. 13 Credit and liquidity facilities 5,445 744 You can see what started out as a crisis of confidence, can easily grow into some bigger. Credit Suisse has strong capital base and liquidity -CEO memo Reuters [1/2] The logo of Swiss bank Credit Suisse is seen at a branch office in Bern, Switzerland September 26, 2022. A decade of interest rates stuck at rock bottom is gone. Liquidity Services stock opened at $12.80 on Friday. Together with the capital raise, progress on our Securitized Products transaction and other measures have further strengthened Credit Suisse Group AG's spot liquidity coverage ratio (LCR), with the average daily LCR for the fourth quarter-to-date, as of December 7, 2022, above 140%. Monday, 03 Oct 2022 8:35 PM MYT. Credit Suisse trades at 0.2x Price to Book: That may look cheap, but frankly it is in line with other low-quality euro banks (Deutsche Bank for example). Credit Suisse had the second-highest total capital ratio of 19.39% and the fourth-highest common equity Tier 1 ratio of 13.5% in the sample based on second-quarter figures. Instead of a liquidity crisis, this may become one of solvency. Existing shareholder Qatar Investment Authority also indicated . And the long term chart is absolutely horrendous. A clear voice in this crowded space. This is the cost to hedge against a default of Credit Suisse over the next 5 years. I dont have 1m to invest or 800k a year but it is still my hard earned. Liquidity Coverage Ratio Disclosure Report For the Quarter Ended March 31, 2022 - Credit Suisse Holdings (USA), Inc. - Consolidated Author: Credit Suisse Group AG Subject: Liquidity Coverage Ratio Disclosure Report For the Quarter Ended March 31, 2022 - Credit Suisse Holdings (USA), Inc. - Consolidated Created Date: 5/12/2022 9:52:02 AM And for every $1 in short term obligations, Credit Suisse has $1.91 in liquid assets. So for what it's worth, the risk of short term default by Credit Suisse here is very low. Credit Suisse might have been the first domino this cycle, but I highly doubt it will be the last. Credit Suisse Group current ratio for the three months ending September 30, 2022 was . Dec. 02, 2022 4:56 PM ET Credit Suisse Group AG (CS) By: Liz Kiesche, SA News Editor 3 Comments. Otherwise you must click "Decline" which will direct you to the Media page. Full-Time. "Credit Suisse has indicated a near-term intention to run with 13-14 per cent CET1 ratio, so the second quarter end ratio is well within that range and the liquidity coverage ratio is well above . The Babylonians Most of the regular macro updates (like this) have moved there. You have entered an incorrect email address! (common equity tier one capital) ratio, a measure of bank solvency, reached 14.4% from 12.9% a . Ive been getting quite a few questions about Credit Suisse, and the potential implications on markets. 1 LIQUIDITY COVERAGE RATIO ("LCR") DISCLOSURE . And how much you will lose in the next 12 months if you start buying too early. as a reason for joining Patreon. The liquidity coverage ratio (LCR) refers to the proportion of highly liquid assets held by financial institutions, to ensure their ongoing ability to meet short-term obligations. The bank's cost transformation remains well under way. The resurrection of Credit Suisse is being funded by a $4 billion capital-raising exercise currently underway. Credit Suisse is a systematically important bank, and people are willing to buy 5 year CDS protection at 300bps, which is up 4-5x this year. Credit Suisse's second-quarter leverage ratio was 6.1%, compared to an average ratio of roughly 4.75% in the rest of the sample, Market Intelligence data shows. was the highest among big European investment banks. An illuminated sign in the window of a Credit Suisse Group AG bank branch at night in Bern, Switzerland, on Sunday, Nov. 27, 2022. Credit Suisse clients pulled as much as 84 billion Swiss francs ($88.3 billion) of their money from the bank during the first few weeks of the quarter, underlining ongoing concerns over the bank's restructuring efforts after years of scandals. My Sweet Retirement CREDIT SUISSE GROUP and Winterthur offer investment products, private banking and financial advisory services, as well as insurance and pension solutions. Really dont understand why these ppl are so free to attack you. Credit Suisse Group current ratio for the three months ending September 30, 2022 was. SG Investment Lady Fundamentally, one would have to consider what the motivation was in setting up the site and if one wanted to move to a subscription based model. 2010 2012 2014 2016 2018 2020 2022 0.6 0.8 1.0 1.2 1.4 Current Ratio. If you are in doubt as to the action you should take, please consult your stock broker or financial advisor. Liquidity Services has a 1 year low of $11.39 and a 1 . Fair to say C would not get hired by anyone to invest. To pull off this restructure, they will need to raise about 4 6 billion Swiss Francs (by latest estimates). I personally feel FH is very humble. And given the macro climate, I do believe for long only investors, T-Bills or SSBs are probably the best place to be to ride out the storm in the near term, given elevated macro uncertainty. . The bank has also issued around 5 billion francs of new debt since Oct. 27, which along with the capital hike has strengthened its spot liquidity coverage ratio to above 140%, it added. Visit your regional site for more relevant services, products and events. 643 0 obj <>/Filter/FlateDecode/ID[<2DB297C0254B044984A3112FFB882186>]/Index[627 29]/Info 626 0 R/Length 92/Prev 233580/Root 628 0 R/Size 656/Type/XRef/W[1 3 1]>>stream If you find this article helpful for you, please do consider signing up for the Patreon subscription. But no, Credit Suisse is not something to be ignored as well. Credit Suisse Group AG can tell the world it has a liquidity coverage ratio of 191% and the vast majority of listeners will be left bemused. Credit Suisse Logo, leads back to the home page, revamp14.Back_x0020_to_x0020_the_x0020_home_x0020_page, Credit Suisse Group AG announces successful rights offering. Your interviewee Jason Cai tried that, and I think received lots of hate mail for his option trade recommends that went wrong. Special account opening bonus for Saxo Brokerstoo (drop email to[emailprotected]for full steps). So thats the rationale behind focussing more on T-Bills or SSBs of late. . COUNTRY RESTRICTION. Anyway, just my two cents. So I tried to explain the above as simply as I could, but it might still come across as a bit technical. Thanks for the comment, and appreciate the feedback as a long time reader. You need to go beyond blue chip stocks. My favourite markets blog is EarlyRetirementNow. As interest rates continue their march up, as liquidity gets tighter, we will start to see more and more Credit Suisse start to emerge from the woodwork. Full review here, or use Promo Code N0D61KGYwhen you sign up to get the vouchers! They may not contribute in a monetary fashion but their time and effort in commenting is worth a lot more than the $25 or $100 a month. But i am from HK n dont trust any old how. The content here is for informational purposes only and should NOT be taken as legal, business, tax, or investment advice. At $25 a month you get my full stock and REIT watchlist, and at $40 a month you get my full personal portfolio. What sort of investment discussion would you like to see in fund managers managing peoples money? I can put your portfolio up on my Bloomberg to track it, for eg. The era of cheap and unlimited liquidity is over. Credit Suisse's second-quarter leverage ratio was 6.1%, compared to an average ratio of . Please check your download folder. It is important to balance sowing vs reaping I disagree. Why are Interest Rates going down? If you are in doubt as to the action you should take, please consult your stock broker or financial advisor. The path forward is highly uncertain. Basically, for every $100 Credit Suisse lends, it is backed by $13.5 of liquidity. As you can see, this week Credit Suisses CDS blew out to 300 bps, which was higher than what was reached in 2008. Credit Suisse Group (NYSE: CS) is dominating headlines Monday morning amid rising concerns over the Swiss bank&#39;s&nbsp;financial health. Heres the 5 year credit default swap (CDS) for Credit Suisse. ZURICH, Oct 3 Credit Suisse shares slid by as much as 11.5 per cent and its bonds hit record lows today amid concerns about the bank's ability to revamp its business and bolster its capital after a string of losses precipitated a strategy reboot. 2. Purchasing Managers Index (PMI) Global Webinar, Politics & Policy: Inflation, Trade & Sustainability Outlooks, M&A In Focus: Dealmakers' Discussion on the 2023 M&A Outlook, concerns about the bank's future viability. For what its worth, I mainly just share my views at the time the article was written. SleepyDevil Credit Suisse reaffirms its Sell rating: MD. Got baa baa sheep who would blindly go where you say. Yup understand the point, will add this in as a new feature for Patreon moving forward. Its easy to buy Mapletree or Capitaland Reits. Keep doing what youre doing. ProButterfly T-Bills or Fixed Deposit a better buy? The Zurich-based bank's liquidity coverage ratio, which measures the quantity of easily-sold . If you use our chart images on your site or blog, we ask that you provide attribution via a "dofollow" link back to this page. I think this decade requires more defensive positioning, Saudi Arabia which is US ally has turned on Us by selling them oil at higher prices. But in any case, I have been thinking about the exact same point, even before you raised it. Over the last couple months or so, there have been 18 articles on SSB/T-bills/FDs, a very straightforward and simple topic. BUT if you think this is nothing, that is not right too. Unintelligent Nerd Current ratio can be defined as a liquidity ratio that measures a company's ability to pay short-term obligations. I wont just put money in any unit trusts my banker said is good. 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