(The Herald Post) – Credit Suisse Group AG has turned to BlackRock Inc’s Financial Markets Advisory group for assistance in selling off a diverse range of structured bonds, according to a Bloomberg News report. The sale has been ongoing for the past two weeks and includes collateralized loan obligations, commercial mortgage bonds, and another niche asset-backed debt.
Following Credit Suisse’s recent acquisition by UBS Group AG in a state-brokered deal, the Swiss bank has been working to restructure its financial portfolio. BlackRock’s involvement in the sales process has been confirmed by sources familiar with the matter, although both companies have yet to publicly comment on the partnership.
This collaboration comes shortly after the U.S. Federal Deposit Insurance Corporation (FDIC) retained BlackRock’s services for selling securities portfolios held in receivership after the collapse of Signature Bank and Silicon Valley Bank. In a related development, law firm Pallas Partners and a Swiss council are reportedly exploring legal action on behalf of Credit Suisse AT1 bond investors who lost their holdings due to the bank’s takeover.