Credit Suisse Group expects to incur a charge following the liquidation of about $10 billion in supply chain finance strategies.
The Swiss bank last week liquidated four strategies run by Credit Suisse Asset Management with assets originated and structured by Greensill Capital. Greensill collapsed earlier this month.
Credit Suisse's priority remains the recovery of assets for the money management unit's investors, the bank said in a statement posted Tuesday on its website. The statement was signed by Thomas Gottstein, CEO of Credit Suisse, and was published ahead of its first-quarter results, set to be released April 22.
"CSAM (is) working closely with the administrators of Greensill Capital, Grant Thornton and with other parties to facilitate this process," the statement said.
It said that CSAM has made $3.1 billion in initial redemption repayments since March 8. Further cash distributions will be announced in the coming months, with investors updated accordingly. Credit Suisse also made a $140 million bridge loan to Greensill Capital last year, of which $50 million has been repaid by administrators.
"While these issues are still at an early stage, we would note that it is possible that Credit Suisse will incur a charge in respect of these matters," the statement added.
The firm temporarily replaced three executives, including its head of asset management for Switzerland and Europe, Middle East and Africa, and the named manager on the four supply chain finance funds. The suspensions were announced in a memo March 10.
