Credit Suisse Stock Price Jumps as Bank Secures $50 Billion Lifeline

Credit Suisse shares jumped after the bank said it would tap a more than $50 billion lifeline from the Swiss National Bank, but analysts remained wary about the lender’s prospects. 

Investor confidence in the Swiss bank deteriorated rapidly this week, after investors turned their attention to the struggling lender following the collapse of two large banks in the U.S. 

The sudden evaporation of support from markets prompted the SNB, Switzerland’s central bank, to offer rescue funds late Wednesday. Credit Suisse called its use of the lending facility a “decisive action to pre-emptively strengthen its liquidity.” It posted what it called high-quality assets to the SNB as collateral to back up the loans.

Credit Suisse shares jumped more than 20% early Thursday after the bank announced it would tap the financing. Credit Suisse bonds also rose, though they didn’t regain all the lost ground from the previous day’s plunge.

The prices on credit-default swaps, which insure against a possible Credit Suisse default, remained at high levels. Such signals have prompted some Credit Suisse clients to pause trades with the bank in recent days, according to people familiar with the matter.