Credit Suisse has finalized selling most of its Securitized Products Group (SPG) and related financing businesses to Apollo Global Management. While the selling price of the SPG unit was not disclosed, Credit Suisse said that Apollo would pay a premium and the deal would result in an improvement in its CET1 ratio. JPMorgan estimates a 50bp improvement to its CET1 ratio. The AUM of the SPG unit is set to fall to $20bn from $75bn after the transaction and Apollo will manage the remaining assets under an expected five-year investment management deal. Analysts from JPMorgan and Vontobel note that sufficient details have not yet emerged to be able to fully assess the deal.
Credit Suisse’s dollar bonds were trading stable with its 9.75% Perp at 95.35, yielding 11.06% to its first call date in June 2027.
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