🦧 one bank down (potentially)
📉 capital concerns from a bank
back in july, credit suisse announced to become less risky
that is, exiting some businesses of what an investment bank can do, so the instituion becomes leaner and less risky
but why tho? that could mean less revenue and business
credit suisse, along with other banks, underwent a $5.5b loss as a lender, as archegos capital management, one of its clients, collapsed and wiped out $100b in share value
what now?
credit suisse shares in europe plunged as much as ~10% in europe's morning session, as the bank's credit default swaps rose sharply friday
long story short: credit default swaps is a type of financial instrument that is used as a tool and protection against, say, a bank's default
credit suisse 5-year credit default swaps jumped to 247 bps on friday, essentially meaning that the market is increasingly looking for protection against credit suisse's default, to levels uncommon for a major bank of that size
credit suisse: CS 0.00%↑
financial sector etf: XLF 0.00%↑