Credit Suisse Forced to Pay Junk-Level Yields for Cash Infusion
- Lender compelled to offer historically high coupon in euros
- Sales are heavily oversubscribed as lender embarks on revamp
A Credit Suisse Group AG bank branch in Basel, Switzerland.
Photographer: Stefan Wermuth/BloombergThis article is for subscribers only.
Reeling from a series of scandals and financial troubles, Credit Suisse Group AG is paying a massive price to drum up demand for bond sales on both sides of the Atlantic that will give it a much-needed injection of cash.
The embattled Swiss lender is marketing an 11-year fixed-to-floating-rate dollar bond at around 9% -- levels more consistent with where high-yield borrowers are currently trading, according to Bloomberg indexes.