Credit Suisse executives reassure investors after CDS spike -FT
Oct 2 (Reuters) - Credit Suisse CSGN.S 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 (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 CDS began the year at 57 bps CSGN5YEUAM=MG .
The Financial Times said that a Credit Suisse executive denied reports that the bank 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 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.
Reporting by Mrinmay Dey in Bengaluru; additional reporting by Karin Strohecker and Elisa Martinuzzi in London; Editing by Nick Macfie and Alexander Smith
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