Credit Suisse and Apollo reach an agreement for a group of securitized products

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Credit Suisse Group has entered into definitive transaction agreements to sell a large portion of its securitized product group and other funding businesses to Apollo as it seeks to reduce risk from its investment bank and divert funds capital to its main activities.

The Swiss lender said Nov. 15 that the Apollo deal and the sale of other assets to third-party investors would reduce the value of assets in its securitized product group to around $20 billion from $75 billion through several transactions. that Credit Suisse expects to be closed by mid-2023.

Apollo will manage these remaining assets under an investment relationship with an expected term of five years to be agreed at the first closing.

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The transactions are expected to give Credit Suisse a release of risk-weighted assets of up to $10 billion, bolstering its capital adequacy ratio.

The the wall street journal reported last month that the bank was close to reaching an agreement to sell its securitized product group, citing people familiar with the matter.

Credit Suisse plans to cut thousands of jobs and raise around $4 billion in fresh capital in a bid to turn a page on a chapter of scandals, heavy losses, executive turnover and declining consumer confidence. market.

Write to Mauro Orru at [email protected]

This article was published by MarketWatch, another publication of the Dow Jones Group

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