Credit Suisse’s perpetual bonds/AT1s were down over 2-4 points after news broke out that the swiss financial markets regulator Finma was investigating the banks involvement in market manipulation. Credit Suisse Chairman Axel Lehmann’s commented on December 2 that outflows “basically have stopped”, just over a week after the group had disclosed an outflow of CHF 84bn ($90.8bn) of client assets on November 23. By the end of the quarter, the number rose to CHF 110.5bn ($119.2bn). Moreover, the comments were made before the completion of its $4bn capital raise that helped arrest the decline in its stock and bond prices. Bloomberg notes that the CEO Ulrich Koerner recently told analysts on a call that more than 85% of the outflows came in October and November, implying that ~CHF 17bn ($18.3bn) of outflows were seen in December after Lehmann’s remarks. Credit Suisse’s shares closed lower by 4%.

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