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.

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