Start the week knowing that international economic contextThe following news marked this March 20:
Credit Suisse and UBS
HE UBS signs $3.3 billion deal to acquire Credit Suisse It comes with comprehensive guarantees and liquidity provisions and aims to increase the value of its invested assets and equity to approximately $5 trillion.
Having said that, the CEO of UBS, Ralph Hamerswarned employees not to discuss business matters with their colleagues and asked them to remember that “Credit Suisse is still our competitor”. Meanwhile, Credit Suisse said the bonuses and salary increases it promised employees would continue to be paid out as the bank intends to keep “business as usual”. An internal memo said there will be no changes to payroll plans and bonuses will continue to be paid out on March 24.
bond loss
Holders of Credit Suisse’s riskiest $17 billion bonds will lose their securities, potentially putting the $275 billion bank finance market in a stalemate. The purchase of UBS would save $3.3 billion in value for Credit Suisse equity investors, but some bondholders insist it shouldn’t be the logical order. “This doesn’t make any sense,” he said. patrick kauffmana fixed income portfolio manager at Aquila Asset Management, which owns this type of bond.
Fed Fallout
Some central bank watchers say it’s more Reasons the Fed refrains from raising interest rates Concerns over the banking sector this week influence all markets. While investors still see a quarter-point rate hike as possible, the Fed’s coordination with five other central banks to increase liquidity in the markets reflects previous crisis periods. “the truth is that [la Fed] “The fact that Julia Coronado, president of MacroPolicy Perspectives LLC and former Fed economist, is involved in global coordination with other central bank officials to bail out institutions and keep liquidity flowing, suggests that a pause is probably a better risk-to-reward ratio.”
reduces attention
S&P 500 and Nasdaq 100 futures were little changed as of 6:21 a.m. in New York. The Bloomberg Dollar Spot Index was trading near daily lows, raising the Japanese yen and sterling. Treasuries generally rose, pushing the UK and German bond markets up. Gold reversed previous gains and oil fell. Bitcoin rises for the fifth day in a row.
Also today…
The US will sell $57 billion in 13-week bonds and $48 billion in 26-week bonds. Among the results reports, shoe closet.
Source: Informacion
James Sean is a writer for “Social Bites”. He covers a wide range of topics, bringing the latest news and developments to his readers. With a keen sense of what’s important and a passion for writing, James delivers unique and insightful articles that keep his readers informed and engaged.