23 July 2026

Yvan Lengwier & Kumar Rishabh | After Credit Suisse, markets find bail-in less credible | 20.07.2026

When Credit Suisse failed in March 2023, Swiss authorities, against market expectations, set aside the resolution plan and arranged a UBS takeover backed by public guarantees, sparing the bail-in bondholders who were next in line to absorb losses. This column traces how that choice reshaped investor beliefs about bail-in across Europe. Spreads on bail-in debt narrowed, the funding penalty on weaker banks shrank, and yields moved less on earnings news. Each points the same way: investors now see bail-in as less likely, a sign that its credibility has declined.