Are one more Lehman Brother crises possible ?????
A year ago, Credit Suisse had a market cap of $22.3 billion. Today, its market value is only $10.4 billion, and the shares have fallen 56.2%. Its credit default swaps (CDS) costs have also hit the highest since 2008. CDS offers protection against a company defaulting on its bonds.
Also, At the moment, not much is known about the reason behind Deutsche bank's underperformance.
Currently, they are trading at ~0.3x book value, and concerns had been raised earlier about their exposure to the derivatives market.
The stocks of both banks have suffered an absolute rout so far. In the past year alone, their stocks have fallen by more than 40%!
Deutche Bank : $12.30 -> $7.40
Credit Suisse : $9.83 -> $3.92
$600 Billion: What Lehman Brothers held in assets when they crashed and took the economy with them.
$2800 Billion: What Credit Suisse and Deutsche Bank control in AUM. 4.6x more.
Credit Suisse is at a 'Critical Moment' now, says the CEO.
What lies in store for the world?
#MacroEconomy #InvestmentIdeas #Forex
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