Credit Suisse Default Swaps Plunge as Panel Rules Against Payout

Credit default swaps tied to Credit Suisse Group AG subordinated debt are tumbling after a panel ruled that the wipe-out of the Additional Tier 1 notes won’t trigger a payout.

One-year CDS were indicated at 246 basis points, according to the latest available ICE Data Services prices as of 11:28 a.m. in London, down about 535 basis points from Wednesday. That puts the instruments on course for the biggest drop since March 20 — the day after the rescue deal with UBS Group AG.

Five-year instruments were indicated 92 basis points lower, at 189 basis points.

The Credit Derivatives ...