Risk indicators such as credit-default-swap rates for European banks are rising following the collapse of Silicon Valley Bank last week. CDS – a type of financial derivative – appreciate in value as the risk of default increases. The traded contracts allow some investors to hedge against falling stock or bond prices, while others may seek to profit in a falling market. Swiss bank Credit Suisse Group’s 1-year CDS rate saw its biggest increase since the start of the month, rising more than 5.43 percentage points to 7.81%. Credit Suisse’s CDS rates may rise again after the bank’s biggest investor, the National Bank of Saudi Arabia, said it was unable to provide any further financial assistance to the Swiss lender due to regulatory constraints, according to reports. Following the comments, the bank’s shares fell to record lows for a second day on Wednesday. “If you look at stock prices and credit default swaps, it’s clear that confidence and credibility is being lost,” Beat Wittmann, managing partner and chairman of Porta Advisors, told CNBC’s “Squawk Box Europe” in Zurich on Thursday. Table below Shows the banks in the STOXX Europe 600 Bank Index with credit default swaps on their bonds: Investor sentiment for default rose sharply after last week’s SVB collapse, the second largest bank failure in U.S. With interest rates remaining high, there is widespread fear of “contagion.” Julian Howard, investment director at GAM Investments, said: “I think it is inevitable that the transatlantic impact will spill over into the European banking system because Europe is also raising rates. Howard added: “The idea that you raise rates and then you end up with problems is probably a common denominator between the U.S. and Europe.” He oversees about $1.2 billion in assets at a Swiss asset manager. CDS rates above 1 percentage point are an extremely rare event and only occur during times of market stress, such as the height of the eurozone debt crisis in 2012. No other European banks’ rates are higher than that. Germany’s largest bank, Deutsche Bank, has a CDS rate of around 0.6%, the second highest, with CDS rates up 9 basis points since early March.