Credit Suisse's collapse reveals some ugly truths about Switzerland for investors

By Hugo Miller

20 Mar 2023 · 3 min read

Editor's Note

Switzerland has long traded on its image as a bastion of certainty. But as Bloomberg reports, the collapse of Credit Suisse Group sows doubt with foreign investors about putting money in the country.

For decades, Switzerland has sold itself as a haven of legal certainty for bond and equity investors. The collapse of Credit Suisse revealed some unpleasant home truths.

In the race to secure UBS's purchase of its smaller rival over the weekend, the government invoked the need for stability and emergency legislation to override two key aspects of open markets: competition law and shareholder rights. Then bondholders discovered that $17 billion worth of so-called Additional Tier 1 debt was worthless.

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