Fears global investment bank may be on the brink of collapse

Credit Suisse is scrambling to reassure investors and clients about its liquidity and capital position as rumours swirl that the major global investment bank is on the verge of collapse.

News.com.au reports the troubled Swiss lender — which has seen its share price plunge by 60 per cent over the past year to a near record low, following a string of scandals and losses — saw a sharp rise in the spreads on its credit default swaps on Friday, sparking fevered speculation online.

Credit default swaps offer protection against a company defaulting on its bonds.

The website said the rapid rise last week of around 15 per cent, to levels last seen in 2009 during the financial crisis, suggested investors were worried about Credit Suisse’s financial health.

Read the full report here.

Photo: Tech Daily/Unsplash

Inflation hasn't been higher for 32 years. What now?
ShutterstockInflation jumped from 5.1% to a new long-term high of 6.1% in the June quarter, a rate matched only by short-lived jump caused by the introduction of the goods…
Returning to where we were is nowhere near good enough
Talk about returning the economy to normal after the crisis is misguided. Before the crisis, normal was nowhere near good enough. Australia did indeed manage to go 28 years without a…
Simple fixes could help save Australian consumers from up to $3.6 billion in 'loyalty taxes'
On average, customers renewing their insurance policy now pay 34% more than new customerswww.shutterstock.comA “loyalty tax” occurs when discounts are offered to new customers while longer-term customers pay more. Often…
Government's misjudgement on banking royal commission comes back to bite it
In light of what is coming out the government should be ashamed of its past performance.Flickr, CC BY-SAIf you are a politician, what do you do when your bad judgement…