Credit Suisse Update (Is It Closer To Bankruptcy?)

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  1. Sounds like credit default swaps experts realize high likelihood of bond defaults to raise insurance price. Strong dollar with slowing global economy causing a bunch of defaults around world for dollar denominated debt, cracks showing now

  2. C.S. becomes a shell that passes payment thru to blackrock !
    D.B & CS will get enough capital to be a conduit for a perpetual motion payout machine? ( students and gamblers never get away?)
    It wasnt a lehman moment it was an AIG moment!
    (Lehman was mostly personal except for all the russian deposits )
    Powell is out to destroy trump! A BULL LOST HIS WALLET IN A CHINA SHOP?

  3. Is there anyone on this channel that even understands CDS valuations? Somehow doubt it. Here is a simple example, but it is for a MBS product, so the recovery rate is predetermined. The key variables in this case would be the "probability of default" a guess at best and the "recovery rate".  This would depend on the bond's placement in the capital structure.

    I wouldn't get too excited over this because the seller of the CDS has done his homework too, doubt he is taking a price that is not in his advantage, so high probability/ low pot odds. The buyer is making a low probability bet, he has the "pot odds" but he also has a negative carry. If anyone has seen "The Big Short" this was the anguish M. Barry was going through when he was rolling around on the floor,…….probably the same thing Steve van Metra is going through with TLT. 🤣🤣🤣🤣🤣🤣🤣

  4. 1 year ago they did a stress test and got the best grade 2 months later they laid off 5000 people, this year another 5000. So it's done for many banks. Every time the bank has lent out 1 million, their own security has been 7000.

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