Swiss bank Credit Suisse, in a show of strength to reassure investors, raised 3 billion Swiss francs (3 billion dollarannounced that it will repurchase bonds of .
This step taken by Credit Suisse, whose share price and bonds fell sharply, aims to reduce the bank’s debt and instill confidence. Rumors began to circulate on social media this week that the bank’s future was in question, following concerns that the bank would need to raise billions of francs in capital.
After Credit Suisse’s 5-year CDS climbed to a 10-year high on Friday last week, the bank’s executives sought over the weekend to reassure major clients, contract parties and investors about their liquidity and capital positions.
The bank’s CEO, Ulrich Koerner, told employees on Friday last week that capital and liquidity were solid, according to an internal report seen by Reuters.
However, Koerner’s statements led to rumors on social media, causing hard sales in the bank’s shares.
The bank stated that it will “take advantage of market conditions to buy bonds at attractive prices” regarding the bond repurchase.
After the announcement, the bank’s shares increased by 3% in the first transactions. euro Bond prices also rose.