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Credit Suisse shares hit record low after report bank is looking to raise cash
Global Banking & Finance Review®
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LONDON (Reuters) – Credit Suisse shares dropped to a record low on Friday after a Reuters report said the company is looking to raise fresh cash.
LONDON (Reuters) – Credit Suisse shares dropped to a record low on Friday after a Reuters report said the company is looking to raise fresh cash.
Credit Suisse has started sounding out investors for a capital hike for the fourth time in seven years as it attempts a radical overhaul of its investment bank, which could include exiting the U.S. market, two sources told Reuters.
Shares in Credit Suisse fell over 7% in early trade to a record low of 4.26 francs.
Including Friday’s move, shares are down over 50% this year and are on track for their worst yearly performance since 2008.
(Reporting by Samuel Indyk; Editing by Dhara Ranasinghe)
Raising capital refers to the process of obtaining funds to finance a business's operations or growth. Companies may seek capital through various means, including equity financing, debt financing, or issuing shares.
Investment banking is a financial service that helps companies raise capital by underwriting and issuing securities. Investment banks also provide advisory services for mergers and acquisitions and assist in market making.
A financial crisis is a situation in which the value of financial institutions or assets drops significantly. It can lead to widespread economic instability, affecting banks, investors, and consumers.
Corporate strategy is the overall plan for a company to achieve its goals and objectives. It involves decisions about resource allocation, business direction, and competitive positioning.
A capital hike refers to an increase in a company's capital, often achieved by issuing new shares or debt. This is typically done to raise funds for expansion, debt repayment, or other financial needs.
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