Credit Suisse Default Swaps Drop After Central Bank’s Liquidity Pledge
- Bank will borrow as much as 50 billion Swiss francs from SNB
- Lender’s credit default swaps remain in distressed territory
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The cost of insuring the bonds of Credit Suisse Group AG against default dropped, though they remained in distressed territory, after the lender said it would tap Switzerland’s central bank for fresh liquidity.
Bid-ask spreads narrowed, with traders quoting prices from 10.5 to 17.5 points upfront for one-year senior credit default swaps on Thursday morning, according to people who saw the quotes.