Credit Suisse bonds slide, credit default swaps rise

CREDIT Suisse bonds have fallen, and the cost of insuring exposure to its debt rose on Monday (Nov 28) following reports of fresh troubles at the Swiss lender.

Five-year credit default swaps widened four basis points (bps) from Friday’s close to 349 bps, the highest since at least early October, according to data from S&P Global Market Intelligence.

Bonds also came under pressure, with the additional Tier 1 US dollar-denominated issues down as much as 1.7 US cents, hitting the lowest level since mid-October.

The head of Credit Suisse’s Swiss unit said on Sunday that “some customers have withdrawn some of their money, but very few have actually closed their accounts”. REUTERS