26 June 2023
The recent banking crisis, starting with SVB’s failure, has spread beyond the tech world. Credit Suisse faced major challenges and was eventually acquired by UBS for a nominal price, leaving shareholders with significant losses. The crisis also impacted CoCo bonds, wiping out investors and causing mark-to-market losses in the AT1 credit market. The contagion from the failure of Silvergate Bank in the crypto world has now reached mainstream banking, with uncertain outcomes and ripple effects throughout the international banking system.