Credit Suisse Sells Dollar Bond at Juicy Yield of Over 9%
- Embattled lender raised capital to help finance reorganization
- Bank also selling $3 billion of euro bonds at nearly 8% yield
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Credit Suisse Group AG tapped the US high-grade market with a bond sale at an exceptionally high yield for an investment-grade company.
The embattled Swiss lender sold $2 billion of 11-year fixed-to-floating-rate bonds with a spread at 485 basis points over Treasuries, after initial price discussions around 512.5 basis points, according to a person with knowledge of the matter. That’s more than double the spread that Wall Street peer Citigroup Inc. sold an 11-year security on Wednesday, and implies a yield of over 9%.