Cost of insuring against Credit Suisse defaulting reaches record high

Investors rush to buy credit default swaps as worries grow over solidity of bank's balance sheet

The cost of buying insurance against Credit Suisse defaulting on its debt soared to a record high on Monday, amid fears on markets about the solidity of the balance sheet at the globally significant Swiss bank.

There was a sell-off in the bank's shares and bonds while investors rushed instead to buy credit default swaps (CDS) - insurance against the bank failing to meet its debts.