SVB is Now In the Hands of the FDIC

Klaus

Well-Known Member
Established Member
Premium Member
Joined
Jan 18, 2018
Messages
13,843
Location
minnesota
Seems like every time a big-time failure where bonds rank in the pecking order question comes up, bondholders take it up the ass. It's like it's a set-in stone rule until it's not.

AT1s are not bonds.

What past examples are there of bonds being subordinated to equity?
 

Weather Man

Persistance Is A Bitch
Established Member
Joined
May 18, 2012
Messages
26,057
Location
MN
AT1s are not bonds.

What past examples are there of bonds being subordinated to equity?

Not bonds? Every article out there is talking about lawsuits over the contingent convertible bonds, or CoCos ??

The examples I was thinking about aren't apples to apples.
 

Klaus

Well-Known Member
Established Member
Premium Member
Joined
Jan 18, 2018
Messages
13,843
Location
minnesota
Likewise basic bich journalists don't understand AT1s nor do those that bought them. They aren't bonds. They are effectively credit insurance that trigger when regulatory capital breeches a specific point. They did exactly what they are supposed to do in this circumstance.
 

Weather Man

Persistance Is A Bitch
Established Member
Joined
May 18, 2012
Messages
26,057
Location
MN
Do you know what a bond is?
Yes, but if it walks like a duck, looks like a duck, trades like a duck and is sold like a duck...it's a duck. The lawyers suing certainly think it's a duck.
 

Weather Man

Persistance Is A Bitch
Established Member
Joined
May 18, 2012
Messages
26,057
Location
MN
Likewise basic bich journalists don't understand AT1s nor do those that bought them. They aren't bonds. They are effectively credit insurance that trigger when regulatory capital breeches a specific point. They did exactly what they are supposed to do in this circumstance.

The purchase disclosures might need a little tweaking on that product, LOL.
 

Weather Man

Persistance Is A Bitch
Established Member
Joined
May 18, 2012
Messages
26,057
Location
MN
Likewise basic bich journalists don't understand AT1s nor do those that bought them. They aren't bonds. They are effectively credit insurance that trigger when regulatory capital breeches a specific point. They did exactly what they are supposed to do in this circumstance.

By the way, I am sure you are technically correct, now the lawyers get to shake it out.
 

venmos1

Well-Known Member
Established Member
Joined
Mar 6, 2006
Messages
1,573
Location
Maine
i did not fact check it but i read a comment on another forum where someone stated that a Fidelity cash account is covered up to 1.2m in insurance. Apologies if im wrong.
 

Silverstrike

It's to big to move FAST!
Established Member
Joined
Sep 4, 2002
Messages
8,653
Location
Here/there/some other silly place
Thankfully the adults are back in charge
So what is this you old hag, is it just a blip and bump or is this about to be that certain word that you said should never appear again in your lifetime??????????
 

DaleM

ATACMS changing the game!
Established Member
SVTP OG 4 Life
Joined
Dec 27, 2002
Messages
23,823
Location
FlahDah man.
I have followed the advice of @DaleM and moved the entirety of my 5 figure net worth into Franklin Mint collectibles and Arbys gift cards.
I see someone can't sleep without me. Remeber that shit when your bank collapses and you need to borrow some more of your gay prostitute money.
 

VegasMichael

Well-Known Member
Established Member
Joined
May 31, 2010
Messages
6,551
Location
Empire State
So what is this you old hag, is it just a blip and bump or is this about to be that certain word that you said should never appear again in your lifetime??????????
Always thought Janet Yellen looked like British comedian Benny Hill.
5515b46fecad04c663fe0c0b


image-w856.jpg
 

Users who are viewing this thread



Top