Credit Suisse executives reassure investors after CDS hike

Credit Suisse executives spent the weekend reassuring major clients, counterparties and investors about its liquidity and capital position, the Financial Times reported on Sunday.

Reached by Reuters, a Credit Suisse spokeswoman declined to comment on the report. Executives made the calls after spreads on Credit Suisse credit default swaps (CDS), which protect 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) rose 6 basis points on Friday to near 247 basis points, the highest level in at least 10 years, according to S&P Global (NYSE:SPGI) Market Intelligence data. Credit Suisse CDSs started the year at 57 basis points. The Financial Times said a Credit Suisse executive denied reports that the bank had formally approached investors for further capital raising, insisting that the bank was trying to avoid such a move because of its record low share price and rising borrowing costs due to downgrades. The Swiss bank's chief executive, Ulrich Koerner, told employees in a note seen by Reuters on Friday that it had solid capital and liquidity. The bank also said last month it was continuing a review that included potential divestments and asset sales. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!