2 Oct (Portal) – Credit Suisse (CSGN.S) executives spent the weekend reassuring major clients, counterparties and investors about their liquidity and capital position, the Financial Times reported on Sunday.
A Credit Suisse spokesman declined to comment on the report when contacted by Portal.
Executives made the calls after spreads on Credit Suisse credit default swaps (CDS), which provide protection against a company defaulting on payments, rose sharply on Friday, signaling investor concerns, the newspaper said.
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Credit Suisse five-year credit default swaps (CDS) rose 6 basis points to nearly 247 basis points on Friday, the highest in at least 10 years, data from S&P Global Market Intelligence showed.
Credit Suisse CDS started the year at 57 basis points.
The Financial Times said a Credit Suisse executive dismissed reports that the bank had formally approached investors about a possible capital raise, insisting it was trying to make such a move with its share price at record lows and higher borrowing costs due to rating downgrades avoid.
The Swiss bank’s chief executive, Ulrich Koerner, told employees in a memo seen by Portal on Friday that it had solid capital and liquidity.
The bank also said last month that it is moving ahead with a review that includes potential divestitures and asset sales.
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Reporting by Mrinmay Dey in Bengaluru; additional reporting by Karin Strohecker and Elisa Martinuzzi in London; Edited by Nick Macfie and Alexander Smith
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