Pimco, Invesco Face Losses in Credit Suisse Debt Writedown
- Risky debt faced write-down in deal to save Credit Suisse
- Pimco is the largest holder of the Swiss lender’s AT1 bonds
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Pacific Investment Management Co. and Invesco Ltd. are among the largest holders of Credit Suisse’s so-called Additional Tier 1 bonds that have been wiped out after the bank’s takeover by UBS Group AG.
Newport Beach, California-based asset manager Pimco is the largest holder of the Swiss lender’s AT1 bonds with around $807 million of the securities — the riskiest in the bank’s debt stack — according to a person familiar with the matter who isn’t authorized to speak publicly. The Credit Suisse notes are set to fall to zero and were quoted at prices of a few cents on the dollar on Monday.