Citi purchases C Suisse CDS swaps portfolio

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Citigroup has purchased a portfolio of credit-default swaps from retreating rival Credit Suisse, two people with knowledge of the matter said.

Bloomberg News reports that Credit Suisse said last week it had agreed to sell the positions, which consist of about 54,000 trades, to an unidentified buyer, reducing its leverage exposure by $5bn. The gross notional value of the portfolio is about $380bn, said people with knowledge of the assets, who asked not to be identified because the size of the portfolio or identity of the buyer aren’t public.

Credit Suisse CEO Tidjane Thiam is pulling out of some securities businesses as he seeks to boost the bank’s capital ratios and rein in a culture he said took too much risk before he joined. The deal shows how some of the biggest U.S. banks are looking to gain market share in trading from the restructurings of European rivals, including Credit Suisse and Deutsche Bank.

Spokeswomen for Credit Suisse and Citigroup declined to comment.

To access the complete Bloomberg News article hit the link below:

Citigroup Said to Purchase CDS Portfolio From Credit Suisse

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