LevFin Wrap — Bank collapses, primary bruised but not broken
- Michal Skypala
This week has been eventful! The contagion from SVB’s off-the cliff dive ripped through markets, leading to wild gyrations in bank stocks, in Crossover, in Treasuries and in most credit products. HSBC’s purchase of the UK arm for £1 stopped one form of contagion in Europe, but investors fixated on Credit Suisse’s solvency, thanks in part to one of the worst-timed accounting restatements ever seen. Even a CHF50bn backstop from the Swiss National Bank didn’t entirely calm conditions.