Investors dump Credit Suisse stock and bonds after UBS rescue

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Investors dump Credit Suisse stock and bonds after UBS rescue
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Investors dumped Credit Suisse shares and bonds on Monday after rival UBS agreed at the weekend to take over the 167-year old bank for just a fraction of its market value, with hefty backstops from the Swiss government.

agreed at the weekend to take over the 167-year old bank for just a fraction of its market value, with hefty backstops from the Swiss government.

A $1 billion AT1 bond with a coupon of 4.5% was bid as low as 1 cent on the dollar, Tradeweb pricing showed. "In theory, there is no reason for the Credit Suisse crisis to extend, as what triggered the last quake for Credit Suisse was a confidence crisis – which doesn't concern UBS - a bank outside of the turmoil, with, in addition, ample liquidity and guarantee from the SNB and the government."

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