Credit Suisse Loss Forecast Revives Europe Bank Credit Concerns
Illiquid Positions Add to Credit Suisse Confusion
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Credit Suisse Group AG’s forecast for a second straight quarterly loss, mainly because of trading operations, has stoked perceived credit risk at European banks.
Costs for insuring European lenders’ subordinated and senior bonds climbed to two-week highs on Thursday, based on Markit iTraxx indexes of credit-default swaps. Contracts tied to Deutsche Bank AG and UniCredit SpA have led increases in the past week.