Credit Suisse Cut Back Resources in Asset Management Unit
(16 December 2020 – Europe) Credit Suisse have decided to revamp its asset management unit in an attempt to recover some of the losses incurred during the pandemic. As it stands, the bank oversees US$494 billion in assets, but will now reduce some of its investment vehicles.
The unit has had a difficult year with various setbacks, including a US$450 million impairment to its stake in York Capital Management this quarter. However, the head of asset management has promised to add US$11.3 billion of net assets in higher fee alternatives and private markets offerings over the next three years.
“COVID-19 has created extreme market uncertainty on a global scale. As a result, liquidity has tightened, and the value of assets have reduced. As a result, banks must revamp their asset management structure to keep losses at its minimum” commented East & Partners Markets Analyst, Pierre Sokoya.
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