/biz/ - Business & Finance

>>58531478

>>56936430
>Scenario 1: Bailout Accepted:

1. Physical Delivery of Stocks: In a standard short-short equity swap, UBS would have to physically deliver the shorted stocks to the counterparty.

2. Impact on Stock Prices: Depending on the size of the basket and the chosen resolution, the delivery of the stocks could significantly impact their prices. This could trigger further market volatility and potentially impact other companies holding similar positions.

>Scenario 2: Bailout Rejected

If the government rejects the bailout request, the situation becomes more precarious for UBS and the future of the basket remains uncertain. Here are some possibilities:

1. Default on Swap Agreement: Without the financial assistance of a bailout, UBS might be forced to default on the swap agreement. This would likely trigger legal proceedings from the counterparty and potentially lead to Forced Sale of Assets, Bankruptcy, Reputational Damage

2. Impact on Stock Prices: The uncertainty surrounding UBS's financial situation and potential default could further impact the prices of the shorted stocks. This could trigger additional volatility and impact other companies in the market.

3. Market Repercussions: The failure of a major company like UBS could have broader implications for the financial market, leading to decreased confidence and potentially triggering a wider economic downturn.

The potential impact of a 150 trillion Euro short-short equity swap and a subsequent government bailout of a country with an 800 billion USD GDP could be significant and far-reaching.

Market Contagion:The financial shock from the swap's failure could spread to other markets,leading to a global economic crisis.

Political instability.

Increased Volatility in Derivatives Market:The failure of such a large swap could trigger a domino effect.This could potentially destabilize the financial system.

>>56223731

>>53848168
Bros I have 100 Tesler corporations. Should I sell CCs on it? What would you do?