(Bloomberg) --
Short bets against Credit Suisse Group AG have quadrupled in a month, a further sign of fragile investor confidence ahead of this month’s announcement of a major strategic review.
Short interest increased to 7.1% of the share capital, or 171 million shares, as of Oct. 5, according to IHS Markit data. That’s up from 1.8%, or 43 million shares, on Sept. 8, the data show.
The rising short interest will add to investor jitters after the stock plunged to a record low at the start of the week before rebounding. Credit Suisse has lost more than half its value this year, yet short selling pressure had eased significantly over the summer prior to the latest market turmoil, with the cost to insure the bank’s debt against default spiking to an all-time high.
Credit Suisse declined to comment on the short interest data when contacted by Bloomberg News.
Chief Executive Officer Ulrich Koerner is set to unveil the findings of his strategic review later this month and may try to bring in an outside investor to inject money into a spinoff of its advisory and investment banking businesses, according to a Bloomberg report.
Shares of the company rallied 8% on Friday, marking a 30% bounce from intraday lows on Monday. It’s still down 48% this year.
Read more: Credit Suisse Worth at Least $15 Billion, JPMorgan Analyst Says
(Updates share price, adds Credit Suisse declining to comment)
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