Credit Suisse to buy back $3 billion in debt, sell landmark hotel as credit fears persist

Signage hangs over the entrance of a Credit Suisse Group AG branch in Zurich, Switzerland, on Sunday, Sept. 25, 2022. Inflation in Switzerland has more than doubled since the start of the year and the State Secretariat for Economic Affairs expects it to come in at a three-decade-high of 3% for 2022. Photographer: Pascal Mora/Bloomberg via Getty Images

Credit Suisse offered to buy back up to 3 billion Swiss Francs of debt securities Friday as it navigates a plunging share price and a rise in bets against its debt.

The Savoy Hotel is in the financial district and is being sold.

Credit Suisse said in a statement Friday that the transactions are in line with their proactive approach to managing their liability and interest expense and allow them to take advantage of market conditions to buy back debt at attractive prices.

Credit Suisse's shares briefly hit an all-time low earlier this week, and credit default swaps hit a record high.

The lender is embarking on a massive strategic review under a new CEO after a string of scandals and risk management failures

The most expensive of the scandals was the bank's exposure to hedge fund Archegos. Credit Suisse has put in place a new management team, suspended share purchases and cut its dividends as it looks to shore up its future.

The closing price of shares was 4.22 Swiss Francs. They are down over 50% so far.

On Friday, the bank announced a cash tender offer relating to eight euro or sterling-denominated senior debt securities, worth up to 1 billion euros. There are two offers on the debt securities.