Dark pool activity has been detected in Credit Suisse $CS stock that looks surprisingly like an institutional investor taking a large position.
Unusual Dark Pool Trades In Credit Suisse $CS Stock
Unusually large dark pool trades occurred in Credit Suisse $CS stock on October 4, 2022.
Surprisingly, the dark pool orders look like buying because of how Credit Suisse $CS stock rose following the prints.
Make sure to review this lesson on dark pool trading so that you understand the chart above.
Credit Suisse’s Credit Default Swaps
The reason that the dark pool activity is surprising is because of the firm’s credit default swaps. Credit Suisse’s Credit Default Swaps, or CDS, a derivative instrument that allows an investor to swap their credit risk with another investor, has surged higher, suggesting the risk of holding Credit Suisse’s debt is at emergency levels. It is now approaching the highs seen during the 2008 financial crisis, which saw U.S. investment bank Lehman Brothers go bankrupt.
Credit Suisse SPG arm attracts Pimco, Centerbridge interest, Bloomberg says
On October 7, 2022, Pimco and a consortium including Centerbridge Partners are among a shortlist of suitors for at least part of Credit Suisse’s SPG business, the bank’s securitized products unit, as the Swiss lender inches closer to a deal, Bloomberg’s Gillian Tan and Jan-Henrik Foerster report, citing people with knowledge of the matter. The talks have become more advanced as Credit Suisse is slated to announced its strategic plan in under three weeks, the authors note. Centerbridge is vying for the business in its capacity as co-asset manager for Martello Re, the authors say. Source: https://news.bloomberglaw.com/securities-law/credit-suisse-spg-unit-said-to-draw-pimco-centerbridge-interest
Credit Suisse Weighs Outside Investor in Investment Bank Spinoff
Credit Suisse crisis: Of spies, lies, and money laundering
Lehman Brothers was allowed to fail 14 years ago and it had $639 billion in assets. Credit Suisse has $1.5 trillion in assets or more than double what Lehman had. Investors could be betting that there’s no way Credit Suisse will be allowed to fail. What investors could be betting on is that Pimco and Centerbridge Partners interest is indicative that the bank is too big to let fail.
Credit Suisse $CS Technical Analysis
Credit Suisse $CS stock is in a technical downtrend. The MACD went positive on October 7, 2022, along with the money flow. The technical resistance level to watch is $5.13. A break above the $5.13 resistance level would signal the $CS stock could run back to $5.62.