Credit Suisse has begun selling $1.9bn of distressed-debt holdings that triggered losses at the end of last year, as part of an overhaul by CEO Tidjane Thiam, people with knowledge of the matter said.
Bloomberg News reports that the lender has been marketing small blocks of its hard-to-sell loans to hedge funds and money managers who purchase distressed debt, said the people, asking not to be identified because the information isn’t public.
The bank has also been contacted by asset managers interested in buying its entire distressed-debt book, but none of the offers were considered viable, two of the people said.
In at least one instance, Credit Suisse’s credit-trading group attempted to sell loans in a health-care company in blocks of $10m to $15m each, one of the people said. Most other offers have been smaller as the bank tries to avoid disrupting debt prices, the people said.
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