Credit Suisse has offered to buy back US$3bn of its own debt in an attempt to draw a line under rumours about its financial health.
Fears rose again yesterday when the bank put its five-star hotel in the centre of Zurich, the Savoy, up for sale.
The Savoy is situated on Paradeplatz at the heart of the country’s financial district.
Credit Suisse said the move was part of a regular review of its global property assets.
Today’s buyback looks to have eased some of the concerns, with the shares rising 3% to their highest for a fortnight, while the bank’s credit default swaps or the cost of insurance against its loans fell 42 basis points to 308.
Credit Suisse said the buyback would "allow us to take advantage of market conditions to repurchase debt at attractive prices".
It made a €1bn euro cash tender offer in relation to eight euro or pound sterling-denominated senior debt securities and another offer to buy back 12 US dollar-denominated senior debt securities for up to US$2bn, Reuters said.
Losses have surged due to its lending to a host of failed businesses, including trade finance group Greensill Capital and hedge fund Archegos.
Speculation about its finances followed reports it was sounding out investors for a fourth round of funding in seven years.
New chief executive Ulrich Koerner is expected to reveal a strategy for the bank to move forward on 27 October when it announces third-quarter results.