# Credit Suisse executives reassure investors after CDS spike, Financial Times reports
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-10-03
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Credit Suisse Executives Reassuring Clients on Liquidity
Meta Description: Credit Suisse executives worked over the weekend to address concerns over liquidity and capital as credit default swaps (CDS) rose sharply.
URL: https://financedigest.com/credit-suisse-executives-reassure-investors-after-cds-spike-financial-times-reportshtml

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(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](https://www.financedigest.com/explainer-what-are-credit-default-swaps-and-why-are-they-causing-trouble-for-europes-banks.html "Explainer-What are credit default swaps and why are they causing trouble for Europe’s banks?") (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](https://www.financedigest.com/mitsubishi-ufj-to-postpone-at1-bond-issuance-in-credit-suisse-fallout.html "Mitsubishi UFJ to postpone AT1 bond issuance in Credit Suisse fallout") CDS began the year at 57 bps.

The Financial Times said that a Credit Suisse executive denied [reports that the bank](https://www.financedigest.com/how-banks-can-avoid-regulatory-reporting-mistakes-with-a-good-dose-of-automation.html "HOW BANKS CAN AVOID REGULATORY REPORTING MISTAKES WITH A GOOD DOSE OF AUTOMATION") 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.

The Swiss [bank’s chief executive](https://www.financedigest.com/bank-of-england-fines-former-tsb-executive-over-2018-it-failure.html "Bank of England fines former TSB executive over 2018 IT failure") 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](https://www.financedigest.com/stocks-rise-after-bank-sale-fuels-investor-risk-appetite.html "Stocks rise after bank sale fuels investor risk appetite").

[(Reporting by Mrinmay Dey in Bengaluru; additional reporting by Karin Strohecker and Elisa Martinuzzi in London; Editing by Nick Macfie and Alexander Smith)](https://www.financedigest.com/london-reclaims-place-as-preeminent-global-financial-centre-for-the-first-time-since-2013-according-to-global-regulatory-outlook-report-from-duff-phelps.html "London reclaims place as preeminent global financial centre for the first time since 2013, according to Global Regulatory Outlook report from Duff & Phelps")


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