At a time when it is in deep trouble, Credit Suisse is trying to quell market panic.

Recently, there is a news that a large investment bank is on the verge of bankruptcy in the financial market, and Credit Suisse is the most speculative institution in the market. Credit Suisse shares have fallen more than 60 per cent so far this year due to a series of crises.

According to media reports on SundayTo reassure investors, Credit Suisse executives reiterated its solid liquidity and capital position to big clients, counterparties and investors.Ulrich K ö rner, CEO of Credit Suisse, told employees in a memo thatThe bank has a capital buffer of nearly $100 billion and expects its highest quality common equity tier one capital ratio (CET1) to remain at 13 per cent 14 per cent for the rest of the year.

Credit Suisse is at a critical juncture when it unveils its latest strategy outlining its investment banking business plan on October 27. K ö rner saidDon't confuse its share price performance with capital strength and liquidity.

In response to this statement, netizens satirized that Lehman's CFO had said the same thing when the global financial crisis led to the bankruptcy of Lehman Brothers in 2008.

Data seen by the media show that Credit Suisse's high-quality liquid assets were about $238 billion at the end of June. That figure has not changed substantially since then, according to a person familiar with the matter. According to Credit Suisse's second-quarter results, its leverage exposure was about $873 billion at the end of June.

Investors' concerns about the health of Credit Suisse's operations are focused on its leveraged portfolio. Credit Suisse said its leveraged financing portfolio totaled $5.9 billion as of June 30; another area of concern for investors was its securitisation products division, which had a total exposure of about $75 billion to mortgage bonds and asset financing.

In the memo, K ö rner also likens Credit Suisse to a "rising Phoenix" that will continue to develop in the long run.

In recent years, Credit Suisse has been hit by espionage scandals, investment fund closures, record trading losses and a string of lawsuits that have pushed the bank away from the dream of a front-line Wall Street investment bank. Credit Suisse suffered 5.1 billion dollars in losses from the financial disaster of Archegos alone. Credit Suisse also had a series of downgrades by analysts last month, raising its borrowing costs.

Credit Suisse's five-year credit default swap index (CDS) soared more than 250bp on Friday, the highest level in at least a decade, according to S&P Global Inc., a market intelligence firm. Derivatives traders are frantically hedging the bank's risk of default.

The higher the price of CDS default swaps, the greater the probability of default. At the beginning of this year, Credit Suisse's CDS price was just 57 basis points.

Earlier, media quoted people familiar with the matter as saying that Credit Suisse was seeking a capital increase from investors and was considering radical options such as a spin-off of its investment banking business. But the deterioration in market conditions suggests that Credit Suisse may struggle to issue new shares to raise money for the planned spin-off and restructuring, and its funding costs could rise sharply.

Credit Suisse's market capitalization has fallen to about SFr10 billion, meaning that any share sale would highly dilute long-term holders.

But a senior Credit Suisse executive denied reports that the bank might formally negotiate with investors about raising funds, insisting that Credit Suisse was trying to avoid such a move when its share price was historically high and its downgrade led to higher borrowing costs.