Credit Suisse: What’s going on, and why its stock is falling - source marketwatch

Credit Suisse was trending for all the wrong reasons this weekend, as social media was in a frenzy debating whether one of the 30 global systemically important banks would collapse altogether. The bank did open its doors on Monday. The bad news was, its shares CSGN, -2.09% CS, 2.42% fell to a new record low, and have dropped 57% this year. Its U.S.-listed shares fell 4% in early New York trade. The market that has really caught the attention of traders is that of credit-default swaps. Those are effectively bets on whether a debt issuer will survive. The 5-year credit default swap widened on Friday to 250 — not an unusual level for a company, but high for a major bank, and Credit Suisse’s worst level since 2009. (UBS’s UBS, 2.34% 5-year credit-default swap was 126, and Goldman Sachs GS, 1.95% was 143, according to data from IHS Markit. The government of Switzerland’s 5-year CDS was at 7.)