Credit Suisse sheds another 8% as traders digest emergency liquidity
A Credit Suisse Group AG office building at night in Bern, Switzerland, on Wednesday, March 15, 2023.
Stefan Wermuth | Bloomberg | Getty Images
According to the CDS rate, the bank’s default risk has surged to crisis levels, with the 1-year CDS rate jumping by almost 33 percentage points to 38.4% on Wednesday, before finishing Thursday at 34.2%.
Charles-Henry Monchau, chief investment officer at Syz Bank, said Credit Suisse needs to go further to restore investor confidence.
“This support from the SNB and the statement from regulators indicate that Credit Suisse in its current form will continue,” he said in a note Thursday.
“However, these measures are not sufficient for Credit Suisse to be completely out of trouble; it is about restoring market confidence through the complete exit of the investment bank, a full guarantee on all deposits by the SNB, and an injection of equity capital to give Credit Suisse time to restructure.”
Correction: This story has been updated with the correct weekly fall for Credit Suisse.
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