by Chris Black
Since January 2022, UBS stock has strengthened 50%.
Stocks on insolvent banks don’t behave like this.
Even its credit default swap (CDS; default risk) is not budging .
Also since Jan 2022, Credit Suisse and SVB both lost about 60% each before their demise in March.
Citibank lost 30%, but has been sideways for over a decade (the ongoing short squeeze is not fundamentally bullish, nor is it good for Citi).
As notoriously unreliable as it may appear, the stock market has been a credible indicator for the weakest financial stocks.
Ignore the rumors :UBS is not the problem child of Europe (www.imf.org/external/pubs/ft/scr/2016/cr16189.pdf).
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