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

Stock Markets Oct 02, 2022 03:35PM ET
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© 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
 
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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.

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.

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

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Comments (17)
charles mitch
charles mitch Oct 02, 2022 6:43PM ET
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For those of you with a shot (get it SHORT..LOL) memory here is the headline from 2018. Now, am I mad....absolutely NO... you see they did me a favor in 2018. I EXITED ALL GAMBLING in the US stock market and so called investment firms and made money the old fashion way. Worked for it. For your enjoyment: Credit Suisse is defending a controversial financial product it issued that played a role in staggering market losses this week, as experts question the logic behind such complex securities. The Switzerland-based bank said it is experiencing no losses from its financial instrument — known as the VelocityShares Daily Inverse VIX Short-Term exchange-traded note  (ETN), or XIV for short. Instead, it appears the fallout will be squarely borne by investors holding the product. LOL
Ben Bigs
Ben Bigs Oct 02, 2022 6:31PM ET
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Wait... I've seen this one before!
Mo Lm
Mo Lm Oct 02, 2022 6:01PM ET
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Don't worry... it will all be fine!
Steven Kuncho
Steven Kuncho Oct 02, 2022 5:51PM ET
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Kareem Serageldin says all is fine, nothing to worry about.
Reca Non
Recanon Oct 02, 2022 5:51PM ET
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❤️❤️❤️❤️❤️❤️
Fluffy Clucks
ChuckKay Oct 02, 2022 5:47PM ET
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I'd buy CS shares right now if I had any cash.
Tyrone Jackson
Tyrone Jackson Oct 02, 2022 5:31PM ET
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Lehman brothers exec said the same thing. Europe is toasty.
Fluffy Clucks
ChuckKay Oct 02, 2022 5:31PM ET
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That is the conclusion people are going to make.  But the chances of a repeat are low.
Robert Cox
Robert Cox Oct 02, 2022 5:31PM ET
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Why? Because banks learned their lessons the last time?
Don Kruuz
Don Kruuz Oct 02, 2022 5:11PM ET
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Crazy ****
Dave Jones
Dave Jones Oct 02, 2022 5:02PM ET
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Woah here we go!
Robert Copeland
Robert Copeland Oct 02, 2022 4:21PM ET
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This will take allot of rescuing I think.
Ramesh Shah
Ramesh Shah Oct 02, 2022 4:09PM ET
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Swiss govt to the rescue🪳
 
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