Credit Suisse Hit with US$450 Million Impairment
(24 November 2020 – Europe) Credit Suisse Group are hit with a US$450 million impairment on a non-controlling stake it held in a hedge fund company known as ‘York Capital Management’ (YCM).
YCM’s decision to scale back its European business and spinout its Asian operation has significantly devalued the bank’s stake in the firm. Credit Suisse investment in YCM represents around one percent of assets within its asset management business.
“In a time of global economic uncertainty, it has become common for hedge funds and wealth managements to reduce the scale of their operations to reduce exposure to global markets. This process can also cause overall business valuations to decline, leaving investors out of pocket” commented East & Partners Markets Analyst, Pierre Sokoya