Bond giant PIMCO lost about $340 million on a category of Credit Suisse bonds that were wiped out by the takeover by UBS , with the American investment manager's overall exposure to the Swiss lender running into billions, a source familiar with the situation said.
Participants attend an Asian investment conference held by Credit Suisse in Hong Kong, China March 21, 2023. REUTERS/Tyrone Siu
NEW YORK, March 20 - Bond giant PIMCO lost about $340 million on a category of Credit Suisse bonds that were wiped out by the takeover by UBS , with the American investment manager's overall exposure to the Swiss lender running into billions, a source familiar with the situation said. debt under a deal which saw shareholders receive $3.23 billion. Shareholders usually rank below bondholders in terms of who gets paid when a bank or company collapses.Additional Tier 1 bonds in PIMCO’s mutual funds had been worth about $340 million on Friday, the source familiar with the matter said.
PIMCO's current holdings of Credit Suisse bonds, excluding the AT1 debt, were worth over $4 billion, said the source, who was speaking on condition of anonymity. Losses on the AT1 securities have been offset by gains in PIMCO's holdings of other bonds issued by the Swiss lender, which have gone up in value after
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