BNP Stops Accepting Swaps Reassignments Involving Credit Suisse

BNP Paribas SA has told some clients that it will no longer accept so-called novations where BNP is asked to step in on derivatives contracts on which Credit Suisse is a counterparty, according to people familiar with the matter.

Paris-based BNP’s move, an effort to trim its counterparty exposure to the Swiss lender, comes amid a chaotic day for Credit Suisse. The cost to hedge against its default surged, reaching levels that are reminiscent of the 2008 financial crisis.

A representative for BNP in Paris declined to comment. The people familiar with the bank’s pullback asked not to be identified ...