Credit Suisse sold $5bn of bonds, the first benchmark offering since its bank unit pleaded guilty to helping Americans cheat on their taxes.
Bloomberg News reports that the bank issued $1.75bn of three-year, 1.375% securities that yielded 60 basis points more than similar-maturity Treasuries, according to data compiled by Bloomberg. The spread was two basis points above where similarly rated Deutsche Bank sold $1.4bn of three-year, 1.35% notes today.
The similar yields show that Credit Suisse isn’t being punished in the bond market even after Moody’s Investors Service downgraded its outlook. The ratings company changed the bank’s outlook to negative from stable after Credit Suisse agreed to pay $2.6bn in penalties after pleading guilty in the U.S. tax-probe settlement on May 19, citing 'the potential for client defections and lost revenues resulting from the criminal plea'.
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