CEO may need to find a different solution.
Bloomberg News reports that the shares are up 14% since Thiam’s appointment, partly on speculation he’ll imitate UBS by making deep cuts to fixed-income trading. That would prove difficult for Credit Suisse, which has been growing that business.
'Thiam may need to find a different solution than just following UBS', said Jon Peace, an analyst at Nomura in London. 'Credit Suisse’s strengths historically have been in fixed income'.
Debt trading has fallen out of favor with investors after regulators increased capital requirements following billions of dollars of losses across the industry during the financial crisis of 2008. Credit Suisse has been winning market share as rivals retreated, while losing ground in areas such as merger advice, which require little capital.
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