Credit Suisse buys back $3 billion in bonds

A sign at the entrance of a branch of Credit Suisse Group AG in Zurich, Switzerland, on Sunday, September 25, 2022. 2022 is his 3%, his highest level in 30 years. Photographer: Pascal Mora/Bloomberg via Getty Images

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Troubled bank Credit Suisse offered to buy back up to 3 billion Swiss francs ($3.03 billion) in bonds on Friday.

Swiss lenders are also considering selling the famous Savoy Hotel in Zurich’s financial district, sparking market speculation that they are rushing for liquidity.

“This transaction is consistent with our proactive approach to managing our overall debt mix and optimizing our interest expense,” Credit Suisse said in a statement on Friday. It allows us to take advantage of market conditions to buy back debt at attractive prices.”

This comes after the market became cautious about its future after Credit Suisse shares hit a record low earlier this week and credit default swaps hit record highs.

Money lenders in trouble Undertaking a major strategic review Under a new CEO after a series of scandals Failure of risk managementand will provide a progress update with quarterly earnings on October 27th.

The most costly of the scandals was the bank’s $5 billion exposure to hedge fund Archegos, which collapsed in March 2021. Credit Suisse has since overhauled its management team, suspended share buybacks and cut its dividend to support the future.

The stock closed at CHF 4.22 on Thursday. They have decreased by more than 50% to date.

On Friday, the bank announced a cash tender offer for eight euro- or sterling-denominated senior debt securities worth up to €1 billion ($980 million) and 12 US dollar-denominated securities worth up to $2 billion. did. The bond offerings expire by November 3 and November 10, respectively.

This is breaking news and will be updated shortly. Credit Suisse buys back $3 billion in bonds

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