Swiss regulator FINMA declared a credit-event during the negotiations to trigger default of AT1/CoCo (contingent-convertible) bonds that are AHEAD of common stock in the capital structure. The rescue left some residual equity.
That of course, caused a selloff in ALL CoCo bonds in Europe.
The EU - ECB, SRB, EBA issued statements that what happened in Switzerland CANNOT happen in the EU (meaning that in the EU, the equity must be wiped out first, and then only the AT1/CoCo bonds). The BOE also issued a similar statement for the UK. But damage has been done to this CoCo class of bonds.
Jeffery Gundlach of DoubleLine wasn't into these bonds and tweeted LINK (with great hindsight):
"Jeffrey Gundlach
@TruthGundlach
·
Mar 19
Bloomberg reports the gunslingers who foolishly kept holding Credit Suisse’s bail-in bonds are angry they are being wiped out. Seriously? Put on your big boy pants and look in the mirror. That’s where the “blame” lies. Learn how to manage risk!"

”Pacific Investment Management Co. and Invesco Ltd. are among the largest holders of Credit Suisse’s so-called Additional Tier 1 bonds that have been wiped out after the bank’s takeover by UBS Group AG.”
Bloomberg
Related Story
This Story lists Lazard and Fidelity as also having large stakes in Credit Suissie AT1 bonds

+1. LB.

”Four prominent U.S. lawmakers on banking matters said on Sunday they would consider whether a higher federal insurance limit on bank deposits was needed to stem a financial crisis marked by a drain of large, uninsured deposits away from smaller and regional banks.”
Story
Bloomberg is reporting this evening that Fed officials are also actively considering a plan to extend FDIC insurance to all bank account balances, regardless of amount. And there was one report on Bloomberg that money has now begun fleeing the largest banks. Where will all this end?
Shelia Bair Weighs in

@Old_Joe. My car style is to buy minimalistic cars and keep them forever. We sail a 1999 boat as well. So my habit is to check fluids every time we take her out and the cars on Sunday. Just an old habit. So when we got the car to replace the totaled one I checked it on the next Sunday. The coolant tank was dry and the oil didn’t look clean. I escalated my concern with the manufacturer and at the dealership and documented the empty tank with pix. Eventually the owner said they would run a whole new certification and three engine tests. The compression was low and I said I wanted a refund. By this time we had the car for a month. The owner immediately said yes,,,, I think to avoid bad publicity. But I really had to grind to get the tests.

https://www.sec.gov/Archives/edgar/data/1388485/000182912623002136/polenemerging_497.htm
One of the changes to the fund is name:
Effective March 13, 2023, the Fund’s name was changed from “Polen Global Emerging Markets Growth Fund” to “Polen Emerging Markets Growth Fund” and all references in the Prospectus and SAI are hereby changed to the new name as of that date. There have been no changes to the Fund’s investment objective or principal investment strategies in connection with the name change.

I like to sleep well at night. 10 years in bucket #1 is the best sleeping aid.

My allocation model is so fragmented & complicated that I fall asleep at night just trying to figure it all out.
Great sleep inducer.
I’ve been burned more than once on used cars, Usually buy new. Then I know what I’m getting. There’s an old expression that when you buy used you’re “Buying somebody else’s problems.”

+1.

@yogibearbull
I recall 10-20 years back, that some 'stable value' choices found within 401k/403b plans may have contained ETN products; synthetic bonds, so to speak; as I named them.
--- The bonds in such a fund are sometimes called "wrapped" bonds, referring to the fact that they are insured. The insurance is commonly issued in the form of a so-called synthetic guaranteed investment certificate (GIC). ---
During the 2008 melt, a friend received a letter stating that 'one shouldn't be concerned about the safety of their underlying 'stable value fund'.
At the time, even some insurers were not very stable. No back up for the back up, for the back up. The musical chairs problem and who is remains without a chair.
Wondering today about ETN's stuff inside such funds.

+1.
Yes, about our Cherokee, the loan agent said, in effect, we paid too much. i'm accustomed to getting screwed at dealerships. Just bend over.

From Reuters

Did not watch the Sunday Face The Nation. But the Reuters article is clear. It all stinks to high heaven.
Anybody want a Senate that's NOT all screwed up? Make it 50 Warrens and 50 Sanders.

@sma3. People love to talk about California being expensive but our property tax just went up 1.9% year over year. Wasn’t planning on buying a car ever again but our perfect retirement car recently was totaled in an accident. Shit happens.

Damn. That sucks. Sorry to hear, and I do hope there were no injuries. Will you let us know?
Here's a weird one: I loved our old Jeep Patriot. White. Then we had a fire under the hood. The firemen found green boughs in there. THAT'S what ignited. Some damn animal made a NEST in there. I was less happy with the replacement we bought: a Jeep Cherokee. I think it was the first year the company resurrected that brand. With the crazy looking headlights.

@sma3. People love to talk about California being expensive but our property tax just went up 1.9% year over year. Wasn’t planning on buying a car ever again but our perfect retirement car recently was totaled in an accident. Shit happens.

You're right again MSF. It's a 0.92% annual administrative fee for my 401-K.
0.92% = 0.0092 x 1000000 = 9200.
0.04% = 0.0004 x 1000000 = 400.
Yes, there is a big difference!

You're right again MSF. It's a 0.92% annual administrative fee for my 401-K.
0.92% = 0.0092 x 1000000 = 9200.
0.04% = 0.0004 x 1000000 = 400.
Yes, there is a big difference!

Particularly now we can get 5% risk free.
I think using your personal rate of inflation helps to eliminate some of the angst about real vs nominal interest rates.
If you don't buy a car, and you own your house, health care, taxes and food and energy inflation are the biggest problem that can't be controlled with lifestyle changes for retirees.
It helps a lot to live in a state (MA) where health care institutions and MDs have a hard time refusing to take Medicare. It is not illegal but there are so many retirees on the Cape no physician or hospital could survive refusing Medicare, except maybe plastic surgeons.
Of course we pay for it in other ways, ie taxes. 5% state income tax, and our real estate taxes have increased 10% YOY

@sma3….. +1. Retired without a pension too. I like to sleep well at night. 10 years in bucket #1 is the best sleeping aid.

@bilvihur, you are overlooking main point by @msf that so long as you are working, your 401k won't require RMDs. But as soon as you shift some (half?), the RMDs will kick in within the T-IRA. That may be a bigger tax hit than parts of $900 that you may save.

I'd be upset about $9K as well. One of us is off a decimal place. I think it's you :-)
0.09% x $1,000,000 = 0.9% x $100,000 = 9% x $10,000 = 90% x $1,000 = $900
If they're really charging $9K, the analysis is a lot different. Let me know.

MSF - Thank you for analyzing the ramifications of doing a rollover at this time. The math was too complex for my mind. I was more objecting to Sequoia getting $9K a year for doing essentially nothing that Vanguard wasn't already doing, but it looks like I'd be cutting off my nose to spite my face. The $9K fee is a small price to pay for keeping the 401-K tax sheltered for now! Thanks again!