Credit Suisse’s Senior Bonds Are Now Beating Out UBS’s

Credit Suisse Group AG’s senior bonds are emerging as a surprising winner from the lender’s emergency rescue — with returns that are now surpassing those of reluctant acquirer UBS Group AG.

A $1.5 billion note issued by Credit Suisse’s holding company has closed its gap to US Treasuries by around 80 basis points, giving it a total return of 1.375% year-to-date, based on data compiled by Bloomberg. An almost identical bond issued by UBS has widened considerably, giving it a return this year of 0.665%.

The majority of the moves came this week, after the Swiss-government orchestrated deal ...