Credit Suisse executive reassures investors after CDS surge – FT

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

(Reuters) – Credit Suisse executives reassured large clients, counterparties and investors of their liquidity and capital positions over the weekend, the Financial Times reported on Sunday.

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

In a sign of investor concern, executives made the decision after the spread on Credit Suisse credit default swaps (CDS), which provide protection against corporate defaults, rose sharply on Friday, the paper said.

Credit Suisse’s five-year credit default swaps (CDS) rose 6 basis points to nearly 247 basis points on Friday, the highest level in at least 10 years, according to S&P Global (NYSE: ) market intelligence data.

Credit Suisse CDS started the year at 57 basis points.

A Credit Suisse executive has denied reports that the bank has formally approached investors about potentially raising more capital, the Financial Times said, insisting it is trying to avoid such a move because its share price at record lows and borrowing costs have risen due to downgrades.

The Swiss bank’s chief executive, Ulrich Koerner, told employees in a memo seen by Reuters on Friday that it had strong capital and liquidity.

The bank also said last month that it was moving forward with a review that included potential divestitures and asset sales.

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