Credit Suisse Bondholders Left Guessing on Archegos Capital Hit

Credit investors have been dumping the riskiest bonds issued by Credit Suisse Group AG after being left in the dark about the full scale of the hit to the bank’s capital buffers from the Archegos Capital crisis.

Some of the Swiss bank’s most subordinated notes, known as CoCos or Additional Tier 1s, have fallen more than 5 cents on the dollar since Monday.

Whether the bonds have significantly further to fall -- and at what point they become cheap enough to attract bargain hunters -- is the “million dollar question,” said Andrew Fraser, head of financial research, credit, at ...