(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 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.
Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!
By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.
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.
(Reporting by Mrinmay Dey in Bengaluru; additional reporting by Karin Strohecker and Elisa Martinuzzi in London; Editing by Nick Macfie and Alexander Smith)
