Leave on Paradeplatz what belongs to Paradeplatz

The Swiss National Bank stepped in yesterday night to allow Credit Suisse to borrow 50 bn CHF from a central bank liquidity facility and to make a tender offer to buy back up to three billion francs of dollar- and euro-denominated debt. This lifeline will probably help to take out some of the drama and stop the sell-off in European banks. Our take is the following: 1/ Corporate and private clients will continue to think twice before banking further with Credit Suisse 2/ Credit Suisse’s problems are long known and specific to Credit Suisse. All potential fall-out due to the systemic nature of CS appears manageable by the global banking sector. Therefore we have been using the current stock price weakness in several of our existing bank holdings ( Caixabank, Bawag ) we know well to increase positions.