Credit Suisse's price falls to record lows, while its CDS hit highs

MADRID, 3 Oct. (EUROPA PRESS) -

The price of Credit Suisse shares has reached an all-time low on Monday while credit default swaps (CDS) have reached their highest level ever recorded, above those observed in the 2008 crisis.

Specifically, Credit Suisse shares have reached a minimum of 3.54 francs this Monday, compared to 3.98 where they closed on Friday (-11.9%). After the mid-session, the share price rose slightly to 3.65 francs.

On their side, the CDS, a financial instrument that allows investors to protect themselves against credit defaults, have reached 278.2 basis points in their five-year horizon. This represents an increase of 11.6% compared to Friday.

Credit Suisse's default swaps have risen fivefold in recent months. In addition, the price of CDS has never reached this high level. In 2008, in the midst of the global financial crisis, they reached 267.3 basis points.

In recent years, the Swiss bank has accumulated a series of financial scandals related to risk management, such as the Archegos hedge fund or loans to Greensill Capital.

In 2019, the bank was involved in a corporate espionage case, while last year the bank was fined in the UK and the US for a bond scandal in Mozambique, the funds of which were used to bribe corrupt government officials in the country. and to pay 'bribes' to several former Credit Suisse bankers and other intermediaries.

As published by the British financial newspaper 'Financial Times' this Monday, several executives of the Swiss bank have been calling their largest clients, certain counterparties and some investors in recent hours to ensure that the firm has a good liquidity and capital position. and thus avoid a disorderly outflow of funds.