(Boursier.com) — Apollo Global Management and BNP Paribas would be interested in taking over at least part of Credit Suisse’s securitized products business. ‘Bloomberg,’ citing people close to the Swiss bank, says the Zurich-based company is reportedly seeking a deal to sell the entire division, while potential investors may only want portfolios or classes of specific risk. Credit Suisse has previously said it is seeking third-party funds for the unit, which is profitable but ‘pumps’ a lot of capital.
The securitized products group (SPG) business buys and resells securities backed by mortgage pools and other assets, such as auto loans and credit card debt. The bank is still considering other options and no final decision has been made, the agency’s sources said. Credit Suisse has announced a plan to attract investors to the branch alongside a broader strategic review after a string of losses under former boss Thomas Gottstein. That review is set to conclude next month with a restructuring that will likely lead to further cuts in investment banking and the elimination of thousands of jobs.
“We said we will provide an update on the progress of our comprehensive strategy review when we announce our third quarter results,” Credit Suisse responded. “It would be premature to comment on potential outcomes by then.”
©2022 Boursier.com
Please note that our “Rumors” section aims to echo the information circulating in the trading rooms. These rumors cannot be verified, so they should be viewed with caution.