Credit Suisse, analysts: “Delicate phase, but the banking system held up”
After stormthe calm seems to have returned world markets following the crash of the Silicon Valley Bank and to the crisis of Swiss credit. On the latest deal concluded, the thesis of several analysts of the sector is unanimous: UBS has made a big deal. According to David Serrafounder and CEO of Algebris Investments “Ubs made the deal of life. Never in history a bank has increased its Nav (Net asset value) del 70% in one night. This will be very good for all stakeholder of Ubs. The FINMA, the Swiss Financial Market Supervisory Authority, has certainly surprised with the change of the law made overnight and with the reversal of the seniority of the capital structure. This it never happened and it clearly is a political mistake very unpleasant,” explains Serra.
“Meanwhile, the declaration of the Bce of this morning, which always has respected the structure of the capital of EU banks, provides an important clarification. We don’t think there will be a structural impact a long term on AT1s (bonds) in Europe, outside Switzerland. These are G20 capital structures that exist all over the world. These obligations That absorb the losses are part of the bank debt fabric and will remain so in Europa and in the United States with Basel III”, he concludes. “The acquisition of Credit Suisse by UBS – says Roberto Guida, full professor of economics at the Campus Bio-medico in Rome and president of Efma – should be able close a delicate phasebut the Italian banking system has proven to be able to handle the shock. What appears evident in the story is the imposing liquidity injection by the Swiss Bank”.
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