Bond Market News

Credit Suisse reported a loss of CHF 1.39bn ($1.51bn) for the fourth quarter of 2022. Its total net loss in 2022 stood at CHF 7.29bn ($7.9bn), marking its second consecutive year in the red and also its largest annual losses since 2008. Net Q4 revenues were seen at CHF 3.1bn ($3.4bn). Its cost-to-income ratio shot higher to 142% in Q4 from 108% in the previous quarter. The Swiss bank reported a CET1 ratio of 14.1%, a significant improvement from the 12.6% reported in Q3. This was helped by its $4.1bn capital raise as part of its strategic transformation. It added that the part sale of a significant portion of its Securitized Products Group (SPG) to Apollo Global will add ~30bp to its CET1 ratio in 1Q 2023. The group said that it expects to report a “substantial loss before taxes in 2023”. Also, Credit Suisse’s total assets stood at CHF 1.3tn ($1.4bn) at end-2022, a decline of ~20% YoY.

CS’s dollar bonds were trading stable with its 9.75% Perp at 95.5, yielding 11.07%.