Credit Suisse’s credit default swap spread has been hovering around levels not seen since 2009. As reported a day back, the cost of insuring the firm’s bonds against default climbed about 15% last week to the said highs.
Read More: Credit Suisse CDS at 14Y high, Deutsche Bank suffers from distressed valuation
As a result, there has been a lot of chatter going on social platforms about the banking giant. A recent tweet from Santiment brought to light that the number of discussions pertaining to Credit Suisse is at an all-time high at the moment.
On Tuesday, Credit Suisse bonds posed a recovery post their latest sell-off. A recent Reuters‘ report outlined that the dollar-denominated additional Tier 1 bonds issued by the financial institution gained 2.6 cents to be bid at 58.35 cents on the dollar. Simultaneously, Credit Suisse’s euro-denominated bonds also treaded on the same path. Per the report,
“Credit Suisse euro-denominated bonds also recovered some of their losses with longer-dated maturities gaining more than 2 cents and 2033 paper receiving bids at 62.0 cents on the euro…”
Tron’s Justin Sun shows interest in Credit Suisse
On Tuesday, Tron founder Justin Sun showed interest in “buying assets or shares” from the embattled Swiss lender and bringing it to Web3. He tweeted:
While most people from the space remain concerned about the current state of affairs, Jim Cramer, remains to be optimistic about the situation. As reported yesterday, the bank’s CEO Ulrich Koerner acknowledged the firm was facing a “critical moment” in its restructuring plans.
Per Cramer, we might soon witness a merger and whoever gets the bank will do “quite well.” Elaborating on the same in a recent CNBC interview, he said,
“I keep thinking, you’re finally going to be able to get a bank merger. And whoever gets Credit Suisse is going to do quite well if you cordon off those losses because boy, that is some great franchise.”
Macro trend
Traders have evidently been pouncing on banking sector stocks of late. Credit Suisse’s stock, however, is not the most picked one. Per data from S3 Partners, BNB Paribas was the most shorted European banking stock on Monday, with a total of $1.68 billion worth of bets against it. The same accounted for roughly 3.66% of the total shares traded.