Analyst says C Suisse share price relects $14bn capital hole

Black Hole

Credit Suisse’s share price reflects a capital hole of $14.1bn, analysts at Barclays said in a note to clients.

'The current level of discount for Credit Suisse is reflecting, to a large extent, concerns over its capital adequacy – particularly the leverage ratio', Barclays analysts Mike Harrison, Aman Rakkar and Jeremy Sigee said in the note Friday.

The sum of the parts valuation 'suggests to us that much of the concern over the capital position is already reflected in the share price', they said.

Bloomberg News reports that Credit Suisse has the second-lowest ratio of capital to risk-weighted assets among 11 banks analyzed by Barclays, and is trailed only by Deutsche Bank.

To access the complete Bloomberg News article hit the link below:

Credit Suisse Seen $14 Billion Short of Capital, Barclays Says

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