Several major CRE asset managers were among the largest holders of Credit Suisse bonds that were written off as part of the Swiss bank's takeover by UBS Group this week.
Because of the government support for the emergency merger of the two banks, the takeover results in a complete write-down of the bank's estimated $17B in Additional Tier 1 bonds, known as AT1 bonds, in order to increase core capital, Bloomberg reported.
Among major CRE players, Pacific Investment Management was the largest holder of the Credit Suisse bonds. Newport Beach, CA-based PIMCO holds about $807M of the securities, the report said. The notes are set to fall to zero.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
