(Bloomberg) – Shares of struggling Swiss lender Credit Suisse Group AG fell as much as 5.4% on Monday, hitting a new record low and putting them on their longest losing streak since 2018. 2011.
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The stock has fallen for ten straight days, losing as much as 27%, with last week’s warning of massive outflows in its core asset management business stunning investors. News that the lender has agreed to sell a large portion of its securitization products business to Apollo Global Management Inc. It was also received negatively, with analysts saying that many details were lacking.
The developments added to the woes in recent years as a series of massive losses and management turmoil disrupted Credit Suisse’s position as one of Europe’s most reputable lenders. . Last month, the bank announced a restructuring that included breaking up its investment bank, splitting its advisory and capital markets divisions, and cutting thousands of jobs.
To pay for the restructuring, the bank is raising 4 billion Swiss francs ($4.2 billion) through rights issuance and share sales to investors, including the National Bank of Saudi Arabia. Saudi Arabia. Rights are traded on the SIX Swiss Exchange from today until December 6.
Credit Suisse’s five-year credit default swaps – which show the cost of insuring their debt does not default – rose on Monday and are nearing the record levels they hit on Monday. October.
–With support from Macarena Muñoz and Michael Msika.
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