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BLOOMBERG
The cost of insuring the bonds of Credit Suisse Group AG against default climbed to the highest on record as the collapse of Silicon Valley Bank sparked concern about broader contagion in the banking industry.
Five-year credit default swaps for the Zurich-based lender jumped as much as 44 basis points 446 basis points, data compiled by Bloomberg show. They widened the most in a Bloomberg index that tracks the CDS of 125 European high-grade companies.
Shares of European banks and insurers slumped and Credit Suisse’s stock tumbled as much as 15% to a fresh record low. Adding to the uncertainty, investors are worried about the bank’s ability to recapture client money, successfully carve out its investment bank and navigate legal and regulatory probes.
Earlier this month, Credit Suisse said it was delaying publication of its annual report following a last-minute query by US regulators over previous financial statements.