Credit Suisse five-year CDS fall sharply as nerves subside

LONDON (Reuters) – The cost of insuring the bonds of Swiss bank Credit Suisse fell sharply on Tuesday from the previous day’s close, in line with a recovery in the company’s shares, as some concerns around the bank subsided.

Credit Suisse’s five-year credit default swaps fell around 13 basis points to 308.32 bps from Monday’s closing level of 321.10 bps, according to S&P Global Market Intelligence.

The Swiss lender’s shares hit record lows last month and its bonds tumbled as doubts have mounted about the strength of the company.

The cost of insuring against a Credit Suisse debt default soared as high as 355 bps on Monday, up from 57 bps at the start of the year, according to S&P Global data.

The bank’s shares and bonds rose on Tuesday, in line with a recovery in risk appetite across global markets. Shares were last up 5.51% but were still down more than 50% for the year.

(Reporting by Harry Robertson; editing by Amanda Cooper)