© Reuters. FILE PHOTO: The logo of Swiss bank Credit Suisse is seen at its headquarters in Zurich, Switzerland March 24, 2021. REUTERS/Arnd Wiegmann/File Photo
MILAN (Reuters) – Shares in Credit Suisse tumbled to a fresh lifetime low below 3 Swiss francs on Tuesday as investors dumped rights to subscribe to new shares in the loss-making lender.
By 0937 GMT, Credit Suisse shares fell 3.3% to 2.912 Swiss francs as the subscription rights tumbled 22% to 0.112 on the second day of trading on the Swiss bourse.
The capital increase, which was approved by investors on Wednesday last week, is intended to fund the embattled bank’s turnaround plan, an attempt to recover from the biggest crisis in its 166-year history.
Credit Suisse’s five-year default swaps, a form of insurance for bondholders, blew out to a new record high of 403 basis points, according to data from S&P Market Intelligence.