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Credit Suisse executives reassure investors after CDS spike, Financial Times reports

Published 10/02/2022, 02:49 PM
Updated 10/02/2022, 03:35 PM
© Reuters. FILE PHOTO: Switzerland's national flag flies above the logo of Swiss bank Credit Suisse at its headquarters in Zurich, Switzerland April 18, 2021. REUTERS/Arnd Wiegmann
SPGI
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(Reuters) - Credit Suisse executives spent the weekend reassuring large clients, counterparties and investors about its liquidity and capital position, the Financial Times reported on Sunday.

A spokesman for Credit Suisse declined to comment on the report when contacted by Reuters.

Executives made the calls after spreads Credit Suisse credit default swaps (CDS), which offer protection against a company defaulting, rose sharply on Friday in an indication of investor concerns, the newspaper said.

Credit Suisse five-year credit default swaps (CDS) jumped 6 basis point to close to 247 bps on Friday, the highest level in at least 10 years, S&P Global (NYSE:SPGI) Market Intelligence data showed.

Credit Suisse CDS began the year at 57 bps.

The Financial Times said that a Credit Suisse executive denied reports that the bank had formally approached investors about potentially raising more capital, insisting that it was trying to avoid such a move with its share price at record lows and higher borrowing costs due to rating downgrades.

© Reuters. FILE PHOTO: Switzerland's national flag flies above the logo of Swiss bank Credit Suisse at its headquarters in Zurich, Switzerland April 18, 2021. REUTERS/Arnd Wiegmann

The Swiss bank's chief executive Ulrich Koerner told staff in a memo seen by Reuters on Friday that it has solid capital and liquidity.

The bank also said last month it was pressing ahead with a review that includes potential divestitures and asset sales.

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