Zurich The negative trend at Credit Suisse does not seem to be stopping. Shares in the major Swiss bank hit a new record low for the third straight trading day on Wednesday, as investors ramp up their bets against the bank. At the same time, the premiums for insurance against loan defaults continue to rise.
With so-called credit default swaps (CDS), investors can protect themselves against the default of Credit Suisse bonds. According to financial service Bloomberg, the risk premium for these products was 4.26 percentage points on Wednesday.
In other words, investors who want to protect themselves against credit defaults with Credit Suisse for five years now pay 4.26 percent of the sum to be insured as a premium.
This means that the risk premium is significantly higher than that of the most important Italian banks. Only CDS from the crisis bank Monte dei Paschi are even more expensive.
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