Crisis Still Reverberating in Credit Suisse Real-Estate Bonds
- CMBS sold before 2008 still accumulating losses in Europe
- Losses on Credit Suisse deals total 1.2 billion euros
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Chances are that if you bought bonds backed by European real estate before the global financial crisis, you’ve lost money, or will. If those bonds were sold by Credit Suisse Group AG, the odds are even higher.
Holders of commercial mortgage-backed securities originated by Credit Suisse have incurred 1.2 billion euros ($1.3 billion) of losses as of November, according to data compiled by Bloomberg. That’s more than three times the losses on Royal Bank of Scotland Group Plc deals at 353 million euros -- the next highest amount -- and the 295 million euros on notes from Lehman Brothers Holdings Inc., which collapsed in 2008, the data show.