Credit Suisse Dollar Bonds Due 2026 Plunge to Distressed Levels

Bonds of Credit Suisse Group AG tumbled on Wednesday trading to levels typically associated with distress.

(Bloomberg) — Bonds of Credit Suisse Group AG tumbled on Wednesday trading to levels typically associated with distress.

Debt due 2026 dropped 17.75 cents to 70 cents on the dollar as of 8.43 a.m. in New York, for a spread of about 2,000 basis points, according to Trace.

Bonds trading with a spread of more than 1,000 basis points over government bonds are viewed as distressed by credit markets. The cost of insuring Credit Suisse debt against default in the near-term earlier hit a level that signaled serious investor concerns.

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