Credit Suisse stocks sunk to fresh record lows on Wednesday and the cost of insuring its debt soared to a new peak amid little sign that investors’ concerns over the outlook for the Swiss lender were fading.
Credit Suisse rights for its 2.24-billion-francs cash call were up 1% though that comes after suffering a 30% tumble on Tuesday.
The bank’s fixed income assets were also under pressure, with additional tier 1 dollar issues down more than 2 cents and many sinking below the levels seen during the early October selloff, Tradeweb data showed.
The cost of insuring exposure to its debt scaling a record high of 409 basis points (bps), up 2 bps from Tuesday’s close, according to S&P Global Market Intelligence. Credit Suisse credit default swaps had started the year at 57 bps.