Credit Suisse group takes steps to improve liquidity

Dhwani Mehta FXStreet

Reuters reported early Thursday that Credit Suisse Group AG undertook decisive action to pre-emptively strengthen liquidity and announces public tender offers for debt securities.

Additional takeaways

“Taking decisive action to pre-emptively strengthen its liquidity by intending to exercise its option to borrow from SNB up to CHF50 billion under a covered loan facility as well as a short-term liquidity facility.”

“Announces offers by Credit Suisse International to repurchase certain OPCO senior debt securities for cash of up to about CHF3 billion.”

Market reaction

Markets are seeing a minor recovery in the risk sentiment, following the bloodbath fuelled by the Credit Suisse crisis on Wednesday. The rescue plan announced by Credit Suisse could offer additional comfort to the traders but risks continue to loom ahead of the European Central Bank (ECB) policy decision.

The S&P 500 futures are up 0.46% on the day while the EUR/USD pair clings to recovery gains at around 1.0600 so far.

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Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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