Tuesday, February 7, 2023

CS now has a 4 billion nest egg

by admin
0 comment

Capital increase was successful

4 billion nest egg for Credit Suisse

Credit Suisse has completed the capital increase, the shares are increasing. Nevertheless, there is still a lot to be done before the major conversion is complete. Large leaps in the stock market are therefore not to be expected.


Credit Suisse’s capital increase was successful.

It is a first milestone for Credit Suisse on the long road to a profitable future: almost all new shares in CS have found buyers. The capital increase has thus been successful and the bank has fresh capital of four billion francs. However, the subscription rate of 98.2 percent does not mean that all existing shareholders took part with great enthusiasm. On the contrary. “There was brisk trading in the subscription rights,” explains Andreas Venditti (50), an analyst at Bank Vontobel: “Especially for hedge funds that have been betting on falling prices at CS, the calculation has worked out.”

What played into the hands of the so-called short sellers: All the rumors about the bank’s catastrophic difficulties that were circulating in the fall. When the bank then communicated the outflow of customer funds, the share price slipped again – a treat for the hedge funds. They were able to purchase shares and subscription rights from frustrated old shareholders and stock up on CS shares at low cost.

Related News

Latest Switzerland News and updates and political news, follow our daily update about the congress and the government roundup, we also provide the latest news from all over the world minute by minute, subscribe to get the latest updates directly to your inbox.

© 2022 All Right Reserved. Switzerland Times