Credit Suisse Default Swaps Hit Record as SVB Failure Hits Banks
- Shares of the Zurich-based bank tumble as much as 15%
- Lender’s investors were already concerned about restructuring
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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 36 basis points on Monday to 453 basis points, according to pricing source CMAQ. They widened the most in a Bloomberg index that tracks the CDS of 125 European high-grade companies.