Credit Suisse’s Other Tier 1 bonds (AT1 bonds) will be worthless after Swiss bank UBS Group agreed to buy Credit Suisse Group AG, but some of the largest holders of the bonds include U.S. Pacific Corp. Includes Investment Management (PIMCO) and Invesco.
More than 2 trillion yen in Credit Suisse bonds are worthless, and the authorities rush to calm the market (3)
Pimco is the largest holder of Credit Suisse AT1 bonds worth about $807 million, according to people familiar with the matter. The person spoke on condition of anonymity because he was not authorized to speak publicly.
Pimco also holds about $3 billion worth of Credit Suisse senior notes, the person said. Some of the shares were up about 25 cents to the euro on Tuesday compared to Thursday, the people said. That would have helped Pimco offset some of the losses it incurred on its exposure to AT1 bonds.
Invesco also holds about $370 million worth of Credit Suisse AT1 bonds, according to data compiled by Bloomberg.
Other Bloomberg data show BlackRock held about $113 million worth of the bonds at the end of February. BlackRock has reduced some of its holdings in recent weeks, according to people familiar with the matter.
Representatives for Pimco and BlackRock declined to comment. Invesco did not immediately respond to a request for comment.
news-rsf-original-reference paywall">Original title:Pimco, Invesco Face Losses in Credit Suisse AT1 Debt Writedown(excerpt)
