Credit Suisse Offers $3 Billion Debt Buyback to Calm Nerves
- Bank is weeks away from announcing results of strategic review
- Shares slumped recently to record lows, default swaps jumped
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Credit Suisse Group AG offered to buy back up to $3 billion of its own debt, in a move aimed at calming investor jitters ahead of the unveiling of a crucial strategy revamp.
The announcement is a signal of confidence, in that the bank has enough liquidity to take advantage of the recent slump in debt markets and scoop up its own debt at a discount. Credit Suisse shares and bonds rose in Friday trading, while the cost of insuring against default fell.