Credit Suisse Default Swaps Are 18 Times UBS, 9 Times Deutsche Bank
- Cost of protection is closing in on level signaling concern
- Credit-default swap curve is inverted, indicating distress
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The cost of insuring the bonds of Credit Suisse Group AG against default in the near-term is approaching a rarely-seen level that typically signals serious investor concerns.
The last recorded quote on pricing source CMAQ stood at 835.9 basis points on Tuesday. Traders were seeing prices of as high as 1,200 basis points on one-year senior credit-default swaps Wednesday morning, according to two people who saw the quotes and asked not to be named because they aren’t public. There can be a lag between pricing seen by traders and those on CMAQ at times of frantic activity.