Credit Suisse’s dollar perps were down by up to 1 point after news came out that investment firm Harris Associates sold its entire stake in the Swiss banking group. Harris Associates was the largest shareholder for several years and cut its 10% stake by half towards end-2022 to 5%. It was reported that the investment firm has now completely exited its Credit Suisse stake. David Herro, their CIO of International Equities said, “There is a question about the future of the franchise. There have been large outflows from wealth management… Rising interest rates mean lots of European financials are headed in the other direction. Why go for something that is burning capital when the rest of the sector is now generating it?” Currently, Saudi National Bank is the largest holder after its overall $4bn capital hike recently, with a 9.9% stake.
Credit Suisse’s 9.75% Perp was down over 0.8 points to 88.72, yielding 13.27%.