Mar 22, 2023 03:29 AM

FINANCE

Caixin Explains: Why Some Credit Suisse Bondholders Got Wiped Out and Shareholders Didn’t

By Wang Xiaoqing and Denise Jia

Under the UBS takeover, Credit Suisse shareholders will receive UBS shares equivalent to 0.76 of a Swiss franc ($0.82) per share, or about 60% less than the bank was worth when markets closed Friday.

Under the UBS takeover, Credit Suisse shareholders will receive UBS shares equivalent to 0.76 of a Swiss franc ($0.82) per share, or about 60% less than the bank was worth when markets closed Friday.

News that roughly $17 billion of Credit Suisse Group AG’s AT1 bonds were wiped out sparked a global market sell-off and fueled investors’ jitters over the health of the broader global banking system.

As part of the Swiss government-brokered takeover of Credit Suisse by its larger rival UBS, the value of $17 billion of Credit Suisse’s riskier ATI bonds was slashed to zero Sunday.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Share this article

Open WeChat and scan the QR code

GALLERY

: Gallery: Match-Fixing Sinks Snooker Players

NEWSLETTERS

Get our CX Daily, weekly Must-Read and China Green Bulletin newsletters delivered free to your inbox, bringing you China's top headlines.

We ‘ve added you to our subscriber list.

Manage subscription

PODCAST

Caixin-Sinica Business Brief: China’s First Homegrown Jet Sets Sights on Airbus and Boeing

00:00

00:00/00:00

MOST POPULAR

1: Cover Story: China’s Consumers Are Flush With Cash, So Why Does the Recovery Have the Wobbles?

2: Weekend Long Read: How to Get China’s Super Savers to Spend More

3: China’s Factory Activity Gets Back to Growth, but Recovery Remains Patchy, Caixin PMI Shows

4: CATL Shares Nosedive Amid Speculation on Weakened Tesla Tie

5: Chinese Computer Maker Says Its Chip was Made With ‘Support’ From Intel

SPONSORED

OR