Install Sina Finance client to receive the most comprehensive market information at the first time →【 Download address 】
The largest shareholder of Credit Suisse ignited a prairie fire in the global market with only a few words.
When Ammar Al Khudairy, Chairman of the Saudi National Bank, was asked whether he was open to increasing the capital injection to Credit Suisse, he answered firmly that "absolutely not". A day ago, Ulrich Koerner, CEO of Credit Suisse, said that the banking business had improved, imploring investors to have confidence in the bank.
As soon as the Saudi National Bank responded, Credit Suisse's share price plummeted by 31%, the largest one-day decline ever, and later narrowed to 16%. Its bonds fell to the level indicating serious financial distress, and the trading price of bonds due in 2026 fell to 70% of their face value in the New York market. According to Trace data, the yield of Credit Suisse bonds is about 20 percentage points higher than that of US Treasuries.
For global investors who are still fearful of the collapse of three regional banks in the United States, the crisis of Credit Suisse has given them new reasons to sell risky assets and buy treasury bonds to avoid risks. Europe's benchmark index fell more than 2%, and the S&P 500 index fell 1.2%. Short term German government bonds and US government bonds soared, and yields fell more than 40 basis points.
"After witnessing the collapse of one bank after another in the United States, the market is now very sensitive to negative news," said Francois Lavier, head of financial debt strategy at Lazard Freres Gestion. "When the popularity is weak enough, it can't stand the slightest disturbance".
Societe Generale Bank Bank, France BNP Paribas And Banco de Sabadell SA fell more than 10%, leading the Stoxx 600 lower. In one day, the stock market value of European banks evaporated by more than 60 billion dollars.
The US fell slightly less, but bank stocks, especially regional banks, were severely hit. Citi and Goldman Sachs The KBW Bank Index fell by 4%, the lowest level since 2020.
"The market panicked and traders rushed to buy safe haven assets," said Oliver Scharping, portfolio manager of Bantleon.
Credit Suisse CEO Koerner pointed out on Tuesday that the bank's liquidity coverage showed that it could withstand a large amount of capital outflows for more than a month.
In fact, to some extent, Al Khudairy's speech is not surprising. The Saudi National Bank has maintained this non increase position since last year, when the company held 9.9% shares in Credit Suisse.
Share trading and account opening enjoy benefits, give investment advisory services 60 days of experience, one-on-one guidance service!
Massive information, accurate interpretation, all in Sina Finance APP
Editor in charge: Li Tong
