Bulletin: Outsized Hedge Fund Exposure Pushes Credit Suisse To A First-Quarter Loss - S&P Global Ratings’ Credit Research

Bulletin: Outsized Hedge Fund Exposure Pushes Credit Suisse To A First-Quarter Loss

Bulletin: Outsized Hedge Fund Exposure Pushes Credit Suisse To A First-Quarter Loss - S&P Global Ratings’ Credit Research
Bulletin: Outsized Hedge Fund Exposure Pushes Credit Suisse To A First-Quarter Loss
Published Apr 06, 2021
2 pages (1174 words) — Published Apr 06, 2021
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Abstract:

FRANKFURT (S&P Global Ratings) April 6, 2021--S&P Global Ratings said today that Credit Suisse Group AG (Credit Suisse; BBB+/Negative/--) has sufficient capacity to absorb the significant financial impact of the failure of a U.S. hedge fund counterparty. Our ratings on Credit Suisse and related entities have a negative outlook because the material exposures to the hedge fund and the Greensill-related supply chain funds have highlighted potential deficiencies in risk appetite and risk controls. Credit Suisse announced today that it expects to incur a Swiss franc (CHF) 4.4 billion ($4.7 billion) charge in respect of the hedge fund failure. This will result in a pretax loss of about CHF900 million for the first quarter of 2021, which indicates that its underlying

  
Brief Excerpt:

...April 6, 2021 FRANKFURT (S&P Global Ratings) April 6, 2021--S&P Global Ratings said today that Credit Suisse Group AG (Credit Suisse; ###+/Negative/--) has sufficient capacity to absorb the significant financial impact of the failure of a U.S. hedge fund counterparty. Our ratings on Credit Suisse and related entities have a negative outlook because the material exposures to the hedge fund and the Greensill-related supply chain funds have highlighted potential deficiencies in risk appetite and risk controls. Credit Suisse announced today that it expects to incur a Swiss franc (CHF) 4.4 billion ($4.7 billion) charge in respect of the hedge fund failure. This will result in a pretax loss of about CHF900 million for the first quarter of 2021, which indicates that its underlying performance was very strong across all divisions in favorable operating conditions. Credit Suisse expects the first-quarter common equity Tier 1 (CET1) ratio to be at least 12% and the CET1 leverage ratio to be at least...

  
Report Type:

Bulletin

Ticker
CSGN@VX
Issuer
Credit Suisse Group AG
GICS
Diversified Capital Markets (40203030)
Sector
Global Issuers
Country
Switzerland
Region
United States
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Bulletin: Outsized Hedge Fund Exposure Pushes Credit Suisse To A First-Quarter Loss" Apr 06, 2021. Alacra Store. May 12, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Outsized-Hedge-Fund-Exposure-Pushes-Credit-Suisse-To-A-First-Quarter-Loss-2623108>
  
APA:
S&P Global Ratings’ Credit Research. (). Bulletin: Outsized Hedge Fund Exposure Pushes Credit Suisse To A First-Quarter Loss Apr 06, 2021. New York, NY: Alacra Store. Retrieved May 12, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Outsized-Hedge-Fund-Exposure-Pushes-Credit-Suisse-To-A-First-Quarter-Loss-2623108>
  
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