Credit Suisse tests investor appetite with new bond sale

CREDIT Suisse started selling a euro-denominated senior unsecured bond on Wednesday (Feb 15), a lead manager memo seen by Reuters showed, tapping markets for the first time since the Swiss bank’s results almost a week ago warned of more losses.

The new bond sale, part of the bank’s euro medium term note (EMTN) programme launched in May 2022, is a test of investor appetite for its bonds after Credit Suisse last week reported its worst annual loss since the 2008 global financial crisis.

The new bond, to be sold by the Swiss lender’s operating company, will mature in August 2026, the memo said, adding that the deal will be priced on Wednesday.

It has a benchmark size, meaning the aim is to raise at least 500 million euros. Price guidance is around 260 basis points (bps) over the mid-swap level, the memo added.

The cost of insuring exposure to Credit Suisse’s debt has risen sharply since the bank’s earnings on Feb 9.

Five-year credit default swaps (CDS) were trading at 326 bps on Wednesday, data from S&P Global Market Intelligence showed, up by around 35 bps since last Thursday. REUTERS