Senior Equity Derivatives Trader

Simon Harris

Equity Derivatives

Credit Suisse Group  / Equity Derivatives

<ul>
<li>Company making headlines over possible liquidity issues along with Deutsche Bank</li>
<li>CDS has blown out to GFC levels, driving implied vols higher</li>
<li>Sell volatility on a relative basis to monetise the spike in option premium</li>
</ul>


Company making headlines over possible liquidity issues along with Deutsche Bank
CDS has blown out to GFC levels, driving implied vols higher
Sell volatility on a relative basis to monetise the spike in option premium


EQD | Credit Suisse (CSGN SW): Fears of Bank Failure Are Unjustified. Sell the Spike in Volatility

Silver Point

Thomas J. Monaco

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

Equity Bottom-Up

<ul>
<li>
Horta-Osorio Is Out:Credit Suisse Group (CSGN.VX) (“Credit Suisse”) Chairman Antonio Horta-Osório abruptly resigned on January 16, 2022, following breaches of quarantine rules in both Switzerland and the United Kingdom;</li>
<li>
Lehmann Not Lehman:With CEO Gottstein’s alleged resistance to strategic change, we remain cautious that the current strategic direction of Credit Suisse will not be maintained;  and   </li>
<li>
Blunders Could Force Sale:There have been numerous costly high profile blunders at Credit Suisse in 2021. A reversion to the “Bad Old Days” could force a sale.   </li>
</ul>



Horta-Osorio Is Out:Credit Suisse Group (CSGN.VX) (“Credit Suisse”) Chairman Antonio Horta-Osório abruptly resigned on January 16, 2022, following breaches of quarantine rules in both Switzerland and the United Kingdom;

Lehmann Not Lehman:With CEO Gottstein’s alleged resistance to strategic change, we remain cautious that the current strategic direction of Credit Suisse will not be maintained;  and   

Blunders Could Force Sale:There have been numerous costly high profile blunders at Credit Suisse in 2021. A reversion to the “Bad Old Days” could force a sale.   


Founder & CEO Bond Angle, LLC, Bond Angle, LLC

Vicki Bryan

Founder & CEO Bond Angle, LLC

Bond Angle, LLC

Insightful commentary and analysis on bond markets and market movers, including financial, economic, and industry catalysts and management shenanigans. 

High yield market investment research

Credit

Bloomberg reported that <a href="https://www.smartkarma.com/entities/nikola-corp" target="_blank" data-smartkarma-citation="entities:29029:1" rel="noopener">Nikola Corp (NKLA US)</a> ex CEO Trevor Milton has <a href="https://www.bloomberg.com/news/articles/2021-08-06/nikola-s-milton-turns-to-lawyers-who-defended-tesla-s-musk?sref=Q1XEaVVD" target="_blank" rel="noopener">hired the s</a><a href="https://www.bloomberg.com/news/articles/2021-08-06/nikola-s-milton-turns-to-lawyers-who-defended-tesla-s-musk?sref=Q1XEaVVD" target="_blank" rel="noopener">ame lawyers</a> who defended <a href="https://www.smartkarma.com/entities/tesla-motors-inc" target="_blank" data-smartkarma-citation="entities:20279:1" rel="noopener">Tesla Motors (TSLA US)</a> CEO Elon Musk in his securities fraud conviction in 2018.He might also consider Jay Clayton.Few lawyers have been more helpful to Elon Musk than ex SEC chair Jay Clayton, given his astonishing leniency with Elon over his fake buyout of Tesla which cost investors $20 billion in evaporated market cap.

Bloomberg reported that Nikola Corp (NKLA US) ex CEO Trevor Milton has hired the same lawyers who defended Tesla Motors (TSLA US) CEO Elon Musk in his securities fraud conviction in 2018.He might also consider Jay Clayton.Few lawyers have been more helpful to Elon Musk than ex SEC chair Jay Clayton, given his astonishing leniency with Elon over his fake buyout of Tesla which cost investors $20 billion in evaporated market cap.

Nikola's Milton Just Hired Elon's Lawyers

<a href="https://www.smartkarma.com/entities/nikola-corp" target="_blank" data-smartkarma-citation="entities:29029:1" rel="noopener">Nikola Corp (NKLA US)</a> ousted <a href="https://www.bloomberg.com/news/articles/2021-07-29/nikola-founder-charged-for-allegedly-misleading-investors?sref=Q1XEaVVD" target="_blank" rel="noopener">founder/CEO Trevor Milton was charged in federal court today with criminal and civil fraud</a> for lying to investors for years about “nearly every aspect of the business” to juice the stock price.This comes just two weeks after <a href="https://www.smartkarma.com/entities/tesla-motors-inc" target="_blank" data-smartkarma-citation="entities:20279:1" rel="noopener">Tesla Motors (TSLA US)</a> CEO Elon Musk defended himself in court over his role in <a href="https://www.bloomberg.com/news/articles/2021-07-13/musk-keeps-temper-in-check-in-tesla-solarcity-trial-testimony?sref=Q1XEaVVD" target="_blank" rel="noopener">pushing Tesla in 2016 to buy SolarCity</a> for an insupportable $2 billion without revealing its near-bankruptcy distress in order to bail out his relatives who ran it. Tesla already paid $60 million last year to settle the case, but Musk, true to form, stubbornly resists any efforts to hold him accountable for just about anything, no matter the harm.It could cost him $2 billion to refund the purchase price for SolarCity if he loses, and the Tesla shareholders suing have a credible case, but Musk is used to getting off without serious consequences.After all, he has defied courts, federal regulators, police, state and local government authorities for years with little more than a slap on the wrist.But this year things have changed, whether Elon Musk realizes it yet or not.

Nikola Corp (NKLA US) ousted founder/CEO Trevor Milton was charged in federal court today with criminal and civil fraud for lying to investors for years about “nearly every aspect of the business” to juice the stock price.This comes just two weeks after Tesla Motors (TSLA US) CEO Elon Musk defended himself in court over his role in pushing Tesla in 2016 to buy SolarCity for an insupportable $2 billion without revealing its near-bankruptcy distress in order to bail out his relatives who ran it. Tesla already paid $60 million last year to settle the case, but Musk, true to form, stubbornly resists any efforts to hold him accountable for just about anything, no matter the harm.It could cost him $2 billion to refund the purchase price for SolarCity if he loses, and the Tesla shareholders suing have a credible case, but Musk is used to getting off without serious consequences.After all, he has defied courts, federal regulators, police, state and local government authorities for years with little more than a slap on the wrist.But this year things have changed, whether Elon Musk realizes it yet or not.

Nikola's Ex CEO Trevor Milton Arrested for Lying to Investors. Some Ask, "What About Elon?"

*No Stranger To Losses: As initially discussed in our “Credit Suisse Group – Hit Parade Continues” note dated March 30, 2021, we expressed our concerns related to various high profile screw-ups at Credit Suisse Group (CSGN.VX) [Credit Suisse]. Credit Suisse’ high profile challenges still include: Archegos Capital Management; Greensill Capital; Wirecard, and Luckin Coffee; and   *Adding Insult To Injury: According to Bloomberg, construction start-up, Katerra, has burned through over USD 2.0 bn and is now being shut down.  Credit Suisse initially indicated losses of between USD 1.0-USD 1.5 bn on its Greensill-related exposures.  Well, this figure appears to increase those losses closer to USD 2.0 bn.

*No Stranger To Losses: As initially discussed in our “Credit Suisse Group – Hit Parade Continues” note dated March 30, 2021, we expressed our concerns related to various high profile screw-ups at Credit Suisse Group (CSGN.VX) [Credit Suisse]. Credit Suisse’ high profile challenges still include: Archegos Capital Management; Greensill Capital; Wirecard, and Luckin Coffee; and   *Adding Insult To Injury: According to Bloomberg, construction start-up, Katerra, has burned through over USD 2.0 bn and is now being shut down.  Credit Suisse initially indicated losses of between USD 1.0-USD 1.5 bn on its Greensill-related exposures.  Well, this figure appears to increase those losses closer to USD 2.0 bn.  

Germany

Deutsche Bank Aktiengesellschaft is a German multinational investment bank and financial services company. It offers a comprehensive range of financial products and services, including corporate banking, investment banking, private banking, and asset management, to companies, governments, institutional investors, and private individuals globally. The company is headquartered in Frankfurt am Main, Germany, and was founded in 1870.

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Deutsche Bank (0H7D LN)

EQD | Credit Suisse (CSGN SW): Fears of Bank Failure Are Unjustified. Sell the Spike in Volatility

A look at Credit Suisse to assess the rumours of bank failure. We see an opportunity to sell the spike in implied vols against DBK which has also...

Simon Harris

Credit Suisse Group – Lehmann Moment

CREDIT SUISSE: Credit Suisse Chairman Horta-Osório resigned following breaches of quarantine. With the CEO’s resistance to strategic change, we are...

Thomas J. Monaco

Nikola's Milton Just Hired Elon's Lawyers

Nikola's Trevor Milton has hired the same lawyers who defended Elon Musk in his securities fraud conviction in 2018. He might also consider ex SEC...

Vicki Bryan

Nikola's Ex CEO Trevor Milton Arrested for Lying to Investors. Some Ask, "What About Elon?"

Many of Milton's lies are very different vs tales Tesla CEO Elon Musk has told investors for years. Others seem troublingly similar. With new...

Vicki Bryan

Credit Suisse Group – Here We Go Again

CREDIT SUISSE GROUP: There were already concerns related to various high profile screw-ups. The latest appears to be Greensill-related construction...

Thomas J. Monaco

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