Reminds me of Patrick Stewart in Extras where he describes how in his movie script in many scenes a woman loses all her clothes and he says "but it's too late, I've already seen everything" and smiles in a creepy way.

"So, it's a comedy?"

"No"

Didnt the guy who worked at lehman end up cfo at svb?

I need to start a business

Fun Fact: she actually has a genius level IQ irl

You and me both sister

Real problem is billionaires owning billions of dollars worth of public companies can crash anything when they dump shares. Tesla when Elon bought Twitter. Amazon when Bezos dumped shares. BK, BOA when Buffet dumped shares. Institutions can't dump all those shares at once. Even if they have to file with the SEC, it moves markets.

Time to spread em for money again I guess. Good news is she doesn't even need to be cast. OF is a website away

Read the article. She apparently doesn’t know what she owned, what she lost, or what she had. Not sure I believe any part of this article.

employee and vendor obligations have higher priority than bondholders.

As if that matters at all for a worker.

But you would not have a job in the first place if you weren’t financed by debt holders for your paycheck.

She just has to spread the leg sitting on a chair and she can recover all her lossea

Always has been. Easier than thief. Decreases actual crime numbers. Better to own a business and use the law. Its why the mafia switched from drugs to using businesses. Like why would you pedal drugs and get sure fire hail sentence vs getting a loan opening a business and stiffing people some other way. It just doesnt make sense. The law even wants you to successed.

The government gave this #$&##% like 9k or 26k on loan for each employee before telling them to short the economy because there gonna sell 90b of bonds every month and increase interest rates to kill inflation.

What greater crime is there than owning a business. You ever subscribed to one of those websites where its almost impossible to unsubscribe. Been dou le charged or they charged you wrong or sold you more than you wanted. Happens almost every where. They even have more slick ways of doing it.

Talk to a manager about how many ways they know of reducing there budget to meet there quota.

You know even when you pay your taxes if you hit the button to pay your taxes with your return they even want to charge you 25 dollars for no reason to pay with your return.

You can even on a business where the owner only has to pay you 3.25. Since 3/4 of there income is in tips from customers.

You commit thief you go to jail for life. Commit a crime in a job you defend it by saying the manager failed you as the owner or go to a country club.

Atleast now we know who the government made pay for the bailout. Another piece of the puzzle.

If I work at a company that collapses you’re damn right I should be paid for my time and work done. Bonuses are almost always Q1.

Actual morons.

One last milk before you slaughter the cow

Yes should be a good read, fixed income is an interesting space. No in contingent convertible bonds the bonds are only converted to equity in certain triggering events as I mentioned earlier, you as a bond holder do not have any conversion rights. It absolutely has a place in tier 1 capital but their risk return profile needs to be reevaluated considering the Swiss madness and CS management’s greed.

Additionally, they can be callable and in practice most cocos are called back after 5/10 years during periods of low interest rates.

Oh she has a lot of courage for doing that scene in Basic Instinct

I'd have to understand the covenants better but at first blush, it would seem these CoCos are time bombs that could very well make a bad situation worse. If holders now know they can get gutted and not just take a haircut, their first impulse would be to convert to common (dilutive) then dump their shares, thus contributing to a downward equity spiral which might spook depositors and a bank run picks up steam. Sure, the CoCos give taxpayers some bailout protection, but as you say, central banks now have to jump into the breach to help with liquidity. So unless I'm missing something, a rethink of these CoCos as contributors to Tier 1 capital should be in order.

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make her a guest Mod

Correct that’s why I said it’s not “entirely” true! But it will affect the liquidity of banks hence why ECB offered to swap dollars daily as a preemptive measure.

I just read Goldman's note that added more color regarding these so-called "CoCos", and you are correct, they were not the usual type bonds and could be gutted in this circumstance. My conclusion was also correct in that it will now be harder for banks to build their capital base using these types of bonds. Given this event, as Goldman puts it, "will likely lead to a reduced appetite for AT1 bonds and credit spreads will balloon". Or as another analyst put it, "AT1 bonds will now be put in the "bank junk" category and will have to compete with the rest of the high yield corporate market".