The share price of Credit Suisse plunged more than 10% after the opening bell of the European sessions on Monday after investors hedged on its five-year credit default swaps (CDS), seeing a potential bankruptcy for the Swiss bank.
Prices of the second-largest bank in Switzerland dropped as much as 12.11% to CHF3.55 per share not long after the market opened on Monday.
The five-year credit default swaps (CDS) of Credit Suisse rose 6 basis points to close at 248.76bps on last Friday, the highest level in 13 years on reports that the bank is looking to raise capital which raised concerns on the financial health of the company.
