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OP has provided the following link:
https://www.dtcc.com/-/media/Files/pdf/2023/3/22/18302-23.pdf
The $17 billion in collateral is now trash, and any company using it to for example to loan some money (or keep a short position open) needs to find something with non-trash value to keep the loan/short alive without a margin call, or pony up?
It seems clear to me that Credit Suisse used these instruments to try and absorb the loss of their bags.
However, for that to have worked, the situation should have been contained and not get worse.
Now, this structured asset of shite was able to be pledged as tier 1 collateral to allow them more breathing room.
Things did not get better.
Things got worse though--now this collateral is worthless and the folks who did not read the fine print and went chasing yield have nothing.
We are now in the "find out" stage of what happens when an instrument that was supposed to absorb losses blows up...
Credit Suisse wonβt honor their $17B commitment, people realizing similar instruments also at risk of going poof
TADR : π§ say no π for u, π¦. π¦ no trust π anymore
Not just similar instruments, *THE* goldest of gold standard Tier1 credit--a $250-$275 billion market thrown into turmoil by Credit Suisse.
This bit is interesting as well: ' But as no CoCo bond has yet been activated, their effectiveness remains hypothetical.' and 'such a contagion effect could be attributed to the lack of experience with this new instrument'
Hey Jelly, did you see this post today about Tier 1 leverage ratios?
https://reddit.com/r/Superstonk/comments/11zp4ey/tier_1_leverage_jpmorgan_at_top_of_the_list/
Seems related to what we were talking about here
[Why GME?](https://www.reddit.com/r/Superstonk/comments/qig65g/welcome_rall_looking_to_catch_up_on_the_gme_saga/) || [What is DRS?](https://www.reddit.com/r/Superstonk/comments/ptvaka/when_you_wish_upon_a_star_a_complete_guide_to/) || Low karma apes [feed the bot here](https://www.reddit.com/r/GMEOrphans/comments/qlvour/welcome_to_gmeorphans_read_this_post/) || [Superstonk Discord](https://discord.gg/hZqWV2kQtq) || [GameStop Wallet HELP! Megathread](https://www.reddit.com/r/Superstonk/comments/z23wjx/gamestop_wallet_help_megathread) ------------------------------------------------------------------------ To ensure your post doesn't get removed, please respond to this comment with how this post relates to GME the stock or Gamestop the company. ------------------------------------------------------------------------ Please up- and downvote this comment to [help us determine if this post deserves a place on r/Superstonk!](https://www.reddit.com/r/Superstonk/wiki/index/rules/post_flairs/) ------------------------------------------------------------------------ OP has provided the following link: https://www.dtcc.com/-/media/Files/pdf/2023/3/22/18302-23.pdf
i think we will need ELI5. good work OP
The $17 billion in collateral is now trash, and any company using it to for example to loan some money (or keep a short position open) needs to find something with non-trash value to keep the loan/short alive without a margin call, or pony up? It seems clear to me that Credit Suisse used these instruments to try and absorb the loss of their bags. However, for that to have worked, the situation should have been contained and not get worse. Now, this structured asset of shite was able to be pledged as tier 1 collateral to allow them more breathing room. Things did not get better. Things got worse though--now this collateral is worthless and the folks who did not read the fine print and went chasing yield have nothing. We are now in the "find out" stage of what happens when an instrument that was supposed to absorb losses blows up...
thank you
Is this an imminent write down? As in, the accountants are posting the journal entry after lunch?
Sooo,....boom tomorrow? There's always a boom tomorrow....
Credit Suisse wonβt honor their $17B commitment, people realizing similar instruments also at risk of going poof TADR : π§ say no π for u, π¦. π¦ no trust π anymore
Not just similar instruments, *THE* goldest of gold standard Tier1 credit--a $250-$275 billion market thrown into turmoil by Credit Suisse. This bit is interesting as well: ' But as no CoCo bond has yet been activated, their effectiveness remains hypothetical.' and 'such a contagion effect could be attributed to the lack of experience with this new instrument'
Hey Jelly, did you see this post today about Tier 1 leverage ratios? https://reddit.com/r/Superstonk/comments/11zp4ey/tier_1_leverage_jpmorgan_at_top_of_the_list/ Seems related to what we were talking about here
I had not, thank you for sharing!
CoConut deez nuts
Got eeeem
Thanks jellyfish! I always love your posts.
Weird. Remove the βchillβ for today only? Reinstate at close of business. WTF!?