CREDIT SUISSE like LEHMAN BROTHERS in 2008? ↴
This is the question regarding the recent news spreading on the web about Credit Suisse, a global investment bank and financial services firm founded and based in Switzerland.
Articles have been reporting the risk of failure and even domino effect on financial peers.
All these new troubles began when the Credit Suisse Credit Default Swap started to rise, showing that there is a perception of more risk regarding the bank: the credit default swap has increased to a new historical high.
And on web platforms, like Reddit, many are writing about the precariousness of Credit Suisse.
Anyway, Credit Default Swaps can be object of speculation!
Some experts say that the failure is improbable, since Credit Suisse has demonstrated to be able to buy back bonds for 3 billion dollars.
But in the meantime, Credit Suisse is keeping on looking for investors for some of its investment banking activities and has put a luxury hotel up for sale for immediate liquidity.
After the sale of the asset and the announcement of selling some business activities, Credit Suisse stock’s price seems to somehow be recovering.
Contra-articles show experts’ trust in the security: according to Morningstar, Credit Suisse is facing new challenges, not only for the current macroeconomic events, but also internal changes in management.
The rating is A (Low), with negative trends: not too bad, thanks to the sales of assets and finance recovery.
Maybe its risk is more about not the capital structure, but its reputation: investors trust a company also when there is a stability of the management.
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