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 .
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.
