The sale, which includes other related businesses, will reduce the bank’s capital burdens but also do away with one of its most profitable businesses. Credit Suisse this week said Apollo had agreed to acquire a “significant part” of the assets of its securitized products business, reducing its holdings of such assets from $75b to $20b. It added that the transactions, which it expected to complete by mid-2023, would achieve a release of risk-weighted assets of up to $10b and improve the bank’s common equity tier one ratio, a reflection of financial resilience.
“We lack important financial details for an assessment of the transactions,” said Andreas Venditti, an analyst at Vontobel. “Some of the details do not seem to have been finalised yet.”
https://www.ft.com/content/856d07ea-7e3d-45a9-86dc-c0ef186ba0a3