The next Banking crash?

[motorbiking]

 

[Odds]

Is that what's known as a cash cow?



I'll get me coat...

 

[Justin Passing]

The US bank had trouble with debt, C.Suisse's was more about a long term malaise. Neither should particularly hit other banks, but shares will drop, as they are doing right now, in other banks. They always come back up again if the bank is fundamentally sound. Barclays won big for me just after the 08 crash. It more than doubled. Barclays always seems to be "sensitive". They're at 6.75 now but may go further down before bobbing back up. Keep a watch. They should be back to 8 before long, probably. Your risk!

 

[gas112]

On the news this morning it was talking about the people affected by the collapse of the US bank not your everyday small saver but companies with tens into 100 plus million in it

 

[JohnD]

On the news this morning it was talking about the people affected by the collapse of the US bank not your everyday small saver but companies with tens into 100 plus million in it

You mean Silicon Valley?

 

[motorbiking]

CS via SVB were exposed to a bond value write down, largely as a result of inflation impacting the valuations. In summary a bond has value if it can provide income above inflation/interest rates. As these factors rise the bond has to rise to match, to maintain the same valuation. That resulted in CS's books being written down as the bonds value fell. To catch up they made more risky investments. The hedgers then started shorted the banks in an attempt to catch the falling knife and everyone sat there looking for the dead cat to bounce. This looks like it happened on Friday.

 

[ellal]

Irrelevance AND purulence from Ellal as always.

I then guess you're happy for banks to act in the way they do?

Meanwhile...

"European banking shares drop after Credit Suisse takeover"

"It had been hoped that the rushed takeover of Credit Suisse, engineered by the SNB and deliberately agreed ahead of the market opening, would ease concerns.

But the fact that many bondholders were wiped out by the terms of the deal, imposed by the SNB, only added to the tensions."

Guess you don't care about that either?

 

[Mottie]

European banking shares drop after Credit Suisse takeover

Guess you don't care about that either?

Correct.

 

[motorbiking]

I blame WhatsApp.

 

[JohnD]

But the fact that many bondholders were wiped out by the terms of the deal, imposed by the SNB, only added to the tensions."

The losses by AT1 bondholders is interesting.

The Additional Tier of bonds are defined (terms vary) as being open to loss or cancellation if the issuer gets into real financial trouble. This makes them riskier, and they are priced to earn higher interest. People like that.

I guess people thought that buying a bond marked "warning, you may lose all your money if the bank goes bust" was nothing to worry about.

Until it did.

This will run and run.

 

[Justin Passing]

There are some ructions in Switzerland, and between them and the EU — CS applied rules nobody expected which other banks don't allow in the contract. The CoCo/AT1 bonds are being viewed with suspicion, but high inflation is on the banks' side which bolsters confidence, as long as rates don't get hiked, which looks unlikely
Ripples may still be consequential in the US, but that's their silly fault.
So, not very exciting, probably.

 

[ReganAndCarter]

Yes, but mostly silver at present. I will sell some soon, then wait for the dip and buy some more.

I've sometimes thought of buying some but don't know what is a good or bad price. Do you buy gold and silver? What do you consider would be a good price to sell some of yours? What price did you buy at?

 

[ellal]

I've sometimes thought of buying some but don't know what is a good or bad price. Do you buy gold and silver? What do you consider would be a good price to sell some of yours? What price did you buy at?

Gold invested in at $800/ounce (at 1.48 dollar rate), still holding on to it.
Silver invested in at $12/ounce (sold at $35/ounce)

You take your chances, but also invest in a basket of currencies...

Imagine if you'd bought a load of Euros before 23/06/2016

 

[Ihavenojob]

I've sometimes thought of buying some but don't know what is a good or bad price. Do you buy gold and silver? What do you consider would be a good price to sell some of yours? What price did you buy at?

Try and get hold of UK coins such as silver Britannias and old silver coins such as half crowns, 2 shillings etc, pre 1947 they are 50% silver, pre 1920 they are 92.5% silver. Gold sovereigns and gold Britannias as well, all these coins I'm sure are CGT free, the Britannias and sovereigns definitely are. I pick them up at auctions, just remember that you have commission to pay on the purchase price. keep an eye on the price of gold/silver if you are buying or selling, sell it when it goes up, buy when it drops. I'm hoping to offload some today, would have done it a while back but my account lapsed and I didn't have a current photo ID.
The pre '47 and '20 sell for much more than their bullion value, they also cost a lot more, but you can often get a bargain if you are lucky. I got some "silver" medallions in a job lot that cost me about £700, they turned out to be platinum, sold just the medallions for about £6.5k.

 

[Mottie]

Imagine if you'd bought a load of Euros before 23/06/2016

Or bought a villa in Spain when the pound was at it's highest and sold it when the pound was at an all-time low.

Is THAT the Karma you were wishing on me?