Credit Suisse raises $1.9bn to stem Archegos losses

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By Aidan Gregory
22 Apr 2021

Credit Suisse has placed Sfr1.7bn ($1.9bn) of mandatory convertible bonds to repair its balance sheet, following steep trading losses caused by the bankruptcies of Archegos Capital and Greensill Capital. But some predict the bank may need to return for more equity down the line.

In a regulatory filing on Thursday, Credit Suisse said the issuance of mandatory convertible bonds, which automatically convert into equity, would boost its common equity tier one ratio, a key measure of a bank’s capital strength, from 12.2% currently to more than 13%.

The bank’s leverage ratio will also ...

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