Effects of the current banking crisis on certificate trading

Liechtenstein, March 21, 2023 – Andreas Woelfl, founder and Chairman of the Board of Directors of iMaps ETI AG, comments on the effects of the current banking crisis on certificate trading as follows:

“I welcome Switzerland’s swift and unbureaucratic approach to rescuing Credit Suisse. It was important to take the uncertainty out of the market. However, this will not bring final peace to the banking sector. The wave of consolidation has probably only just begun and one or the other regional bank could effectively become insolvent as a result. As an issuer of participation certificates, I am of course particularly relieved that the path we have now taken could be taken without any haircuts or discounts for investors in Credit Suisse certificates – which are legally bearer bonds. Nonetheless, the issue of issuer risk will once again become the focus of investors’ attention. I assume that in the near to medium future, issuers from larger banking groups will also follow the example of my iMaps ETI AG and other competitors and at least collateralise the investment certificates. This means that in the event of insolvency, the pledge does not flow into the insolvency estate, but is used exclusively to service investor claims. A backup is associated with slight additional costs, but they are worth it.”