frobinhood t1_jef0gyw wrote on March 31, 2023 at 3:13 PM

because the bond they were holding are meant to be written off to save the balance sheet. its entire purpose was to get written off when the bank faces financial trouble, thats why it paid some crazy return like 12%. not all bonds are same, CS was very clear on their paperwork and website regarding those bonds they even have them above stocks in the pecking order of what to get written off first. only idiots think this is something strange, the world of finance is more complicated than what these reddit armchair expert think.

DhairyaVed OP t1_jef8jjl wrote on March 31, 2023 at 4:06 PM

the logic is bond holder are always paid before shareholder

frobinhood t1_jefciv4 wrote on March 31, 2023 at 4:31 PM

how many times do i have to write THERE ARE DIFFERENT TYPES OF BONDS before you understand? read the description of those bonds in their investor disclosure jesus christ.