Lending reports

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

Oct 2 (Reuters) – Credit Suisse (CSGN.S) executives spent the weekend reassuring large clients, counterparties and investors of its liquidity and capital position, according to the Financial Times reported on Sunday.

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

Leaders made the calls after spreads Credit Suisse’s credit default swaps (CDS), which provide protection against a company’s default, rose sharply on Friday, a sign of investor concerns, the newspaper said.

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

Credit Suisse CDS started the year at 57 basis points.

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

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

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

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Reporting by Mrinmay Dey in Bangalore; additional reporting by Karin Strohecker and Elisa Martinuzzi in London; Editing by Nick Macfie and Alexander Smith

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