The bank had a message for investors over the weekend after sending words of reassurance to staff on Friday.
Executives at Switzerland’s second-largest bank spent the weekend allaying clients after its credit default swaps tumbled last month, the« Financial Times» (behind paywall) reported Sunday, citing a bank executive.
The bank’s credit default swaps, which offer protection against a company defaulting, dropped more than 25 percent last month, signaling market concerns over the group’s liquidity and capital position and prompting the bank’s executives to contact large clients, counterparties and investors about its health, the report said.
Stock Price Vs Capital Position
The move came after the bank sent a memo to employees telling them not to confuse the bank’s «day-to-day stock price performance» with its strong capital base and liquidity position.
