Credit Suisse’s CEO Axel Lehmann said that outflows witnessed by the bank since the beginning of October have reversed with clients starting to return to the bank. He said, “The good part of the sad story is we had very few clients leaving. They are still with us, they still continue to do business with us… I have anecdotes from clients and I know that the money will certainly come back over time”. The bank saw wealthy clients withdraw ~CHF 63.5bn ($67.4bn) since the start of October, or about 10% of its wealth management assets. Post this news, Credit Suisse’s bonds dropped sharply and its CDS spreads spiked by over 40bp in a single day to nearly touch 450bp. Its EUR 5Y CDS spread has eased by 20bp now to levels of 425bp.
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