Following the billion-dollar Greensill products, Credit Suisse is suspending further funds from trading. Among them are vehicles that finews.asia had identified earlier.
The closure and liquidation of the four Greensill funds with assets of more than $10 billion is drawing wider circles at Credit Suisse (CS). As reported by «Bloomberg» and confirmed by the bank upon request, the institution is now temporarily closing four more funds that used the supply chain finance products as sub-funds.
Additional $1.2 Billion Blocked
According to an online statement from the institution, the funds in question are the following, with more than $1.2 billion in combined assets:
- Credit Suisse (Lux) Multi-Strategy Bond Fund, with $701.3 million in assets
- Credit Suisse (Lux) Multi-Strategy Alternative Fund, with $303 million in assets
- Credit Suisse (Lux) Qatar Enhanced Short Duration Fund, with $148.9 million in assets
- Credit Suisse (Lux) Institutional Target Volatility Fund, with 76.5 million euros in assets
finews.com had already pointed out the problem of the sub-funds in research, naming various vehicles now affected. Credit Suisse did not want to comment on the report at the time.
Repayments Could Drag On
The multi-strategy funds mentioned are sold only to professional investors. Thus, the bank will hope that the Greensill-related fund closures should now come to an end.
Meanwhile, the Swiss wealth manager is working to quickly return the assets locked up in the Greensill funds to investors. The bank says it has already succeeded with investments totaling more than $3 billion. Further repayments are also tied to the maturity of the securitized corporate financings – so the money comes in gradually as the companies pay off their debts.
