Credit Suisse Offers To Buy Back $3 Billion of Debt Securities as it Grapples with Market Turmoil

Credit Suisse
Credit Suisse

Credit Suisse offered to buy back up to 3 billion Swiss francs ($3.03 billion) of debt securities Friday as it grapples with a plummeting share price and a surge in bets against its debt.

The Swiss lender is also selling its famous Savoy Hotel in Zurich’s financial district, prompting some speculation that it is struggling with liquidity.

In a statement Friday regarding the offer to repurchase debt, Credit Suisse said: “The transactions are consistent with our proactive approach to managing our overall liability composition and optimizing interest expense and allow us to take advantage of market conditions to repurchase debt at attractive prices.”

The moves came shortly after Credit Suisse’s shares hit an all-time low earlier this week, and credit default swaps soared to a record high amid the market’s turmoil over its future.

The troubled lender is embarking on a massive strategic review under a new CEO after a string of scandals and risk management failures and will give a progress update alongside its quarterly earnings on Oct. 27.