Loading ...The drama is unfolding of a massive amount of illiquid debt scrip. (Illiquid scrip or illiquidity refers to investments for which there is no market, i.e. no buyers. Forced sales can result in massive price drops.) Credit Suisse wants to unload $90 billion of thinly traded debt scrip in unfavourable conditions.
The bank currently carries $380 billion of leverage. A loss of 10% on the $90 billion it is attempting to divest in the current difficult market would cost $9 billion and drive the bank close to junk territory.
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