On Monday, international markets did not seem to calm down after the acquisition of a troubled Swiss bank. Credit Suisse from UBSas Asian stock markets fall earlier in the week and bonds, seen as more vulnerable, also take a hit.

Sunday’s announcement of a 3 billion Swiss franc takeover of Credit Suisse at 0.76 francs a share by its big domestic rival may have temporarily allayed nightmares about the Swiss system, but it hasn’t allayed contagion fears. liquidity in other countries after the closure this month of three US lending institutions.

In addition, the very acquisition of Credit Suisse, at about 60% below Friday’s closing price, highlights the risk that UBS is taking on and the risks that may exist in other banking systems less stable than Switzerland’s.

So while the deal has been greeted with relief by central banks around the world, markets are reacting with clear dismay. This is also facilitated by the massive loss of holders of Credit Suisse (CoCos) convertible bonds, which is estimated at 16.3 billion francs, or $17.6 billion.

The Swiss central bank said in a statement that the bailout “will ensure financial stability and protect the Swiss economy.”

On Monday, Hong Kong’s de facto central bank and securities regulator joined other central banks in welcoming the announcement from Zurich and tried to reassure the public that business will continue as usual.

In Australia, Christopher Kent, Assistant Governor of Financial Markets at the Reserve Bank of Australia (RBA), pointed to the pressure on investors: “Volatility in the Australian financial markets has increased,” he told a conference on Monday. “But the markets are still functioning and, more importantly, Australian banks are undeniably strong – the banks’ capital and liquidity positions are well above regulatory requirements.”

Perhaps the key to growth in Switzerland is the acquisition of Credit Suisse, which many see as viable, even if the markets have seen bankruptcy protections known from the Greek financial crisis, CDS (Credit Default Swaps) and UBS, rise in the last 24 hours.

In addition to buying at a significantly lower market price and securing a 100 billion franc credit line from the Swiss central bank, UBS announced that its Credit Suisse customer policy will continue the decidedly more conservative approach that UBS has traditionally taken.

According to CNN, Bloomberg, BBC.