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Citigroup Said to Purchase CDS Portfolio From Credit Suisse

  • Credit Suisse retreating from businesses under Thiam overhaul
  • Sale of credit derivatives cut leverage exposure by $5 billion
Updated on

Citigroup Inc., the U.S. bank with the most derivatives, purchased a portfolio of credit-default swaps from retreating rival Credit Suisse Group AG, two people with knowledge of the matter said.

Credit Suisse said last week it had agreed to sell the positions, which consist of about 54,000 trades, to an unidentified buyer, reducing its leverage exposure by $5 billion. The gross notional value of the portfolio is about $380 billion, said people with knowledge of the assets, who asked not to be identified because the size of the portfolio or identity of the buyer aren’t public.