Why Are Credit Suisse Shares Sliding Today?

Why Are Credit Suisse Shares Sliding Today?

U.S.-listed Credit Suisse Group AG CS shares are sliding close to 5% in premarket trading as traders fret over the bank’s financial health.

What Happened: The Swiss bank’s credit default swaps, the cost of insuring the company’s bonds against defaults, spiked sharply on Friday to levels seen in 2019.

This set tongues wagging about a Lehman-like collapse.

See Also: As Credit Suisse's Credit Default Swaps Spike To Near 2008 Levels, Rumors Of Lehman-Like Collapse Floated, Bank Steps In To Allay Concerns

The bank’s executives went about allaying the doubts of counterparts, investors, clients, lenders, employees and the general public over the weekend, which apparently has not produced the desired results.

The stock is staring at a record low when it opens for trading in New York.

Price Action: In premarket trading, the stock was down 5.36% to $3.71, according to Benzinga Pro data.

 

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