LONDON (Reuters) - The cost of insuring the bonds of Swiss bank Credit Suisse (SIX:CSGN) fell sharply on Tuesday from the previous day's close, in line with a recovery in the company's shares, as some concerns around the bank subsided.
Credit Suisse's five-year credit default swaps fell around 13 basis points to 308.32 bps from Monday's closing level of 321.10 bps, according to S&P Global (NYSE:SPGI) Market Intelligence.
The Swiss lender's shares hit record lows last month and its bonds tumbled as doubts have mounted about the strength of the company.
The cost of insuring against a Credit Suisse debt default soared as high as 355 bps on Monday, up from 57 bps at the start of the year, according to S&P Global data.
The bank's shares and bonds rose on Tuesday, in line with a recovery in risk appetite across global markets. Shares were last up 5.51% but were still down more than 50% for the year.