Credit Suisse Group has reportedly turned to debt sale as it seeks to recover from the losses incurred from exposure to the collapsed hedge fund Archegos Capital.
According to a Bloomberg report, Credit Suisse has sold $3.75bn of bonds. It issued the debt in three parts including a five-year $1.75bn fixed tranche, the publication added quoting people familiar with the development.
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However, Credit Suisse did not confirm the debt sale.
The move comes days after the Swiss investment bank reported its results for second quarter 2021. The quarterly net profit plummeted 78% year-on-year to $278.45m (CHF253m) after it took a CHF4.4bn hit from Archegos in Q1.
In Q2 2020, Swiss bank’s net profit stood at CHF1.16bn.
The collapse of Archegos Capital and its resulting impact also triggered several other changes in the bank. These include replacing several executives, trimming dividend and halting share buybacks among others.
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By GlobalDataCurrently, Credit Suisse is conducting a strategic review of the business.
In June, Reuters reported that Credit Suisse may seek a merger with rival UBS amid dealing with the fallout from the collapse of clients Archegos and Greensill.
The top management also fears that the investors may demand a break-up of the bank.
Last month, several other majors Bank of America, Morgan Stanley and Goldman Sachs Group also carried out debt sales.
