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> buy all bonds in the market at a distressed level and make a hefty return.

How? They can't sell the bonds. And holding the bonds to maturity is questionable since CS may likely default. If it doesn't default, it would be thanks to a lifeline thrown by...SNB. So yeah, no idea what you're on about there.

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Why sell it? The SNB doesn't need to sell them and yes they can hold them to maturity. They can also give a larger credit line to CS and CS can buy back all the bonds from investor that want it. At CHF 100B it's a CHF 50B - 20B capital injection.

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