21st Mar 2023 15:38
(Alliance News) - TwentyFour Select Monthly Income Fund Ltd on Tuesday said it does have a small exposure to Credit Suisse Group AG's senior unsecured bonds, which have not been impacted by the Swiss firm's takeover.
It added that it does not hold any Credit Suisse AT1 bonds. Furthermore, the fund does not hold debt from any other Swiss banks.
On March 19, UBS Group AG said it would take over its troubled Swiss rival Credit Suisse for USD3.25 billion following crunch talks aimed at stopping the stricken bank from triggering a wider international banking crisis. AT1 bondholders in Credit Suisse were wiped out.
TwentyFour said: "TwentyFour Asset Management LLP believe the rationale for holding European and UK subordinated debt is sound and was re-endorsed by the Eurozone regulators yesterday, confirming that the seniority waterfall put equity holders behind debt holders. The comment from ECB President Christine Lagarde, last night saying 'Switzerland does not set standards in Europe', was another strong statement about the difference in regulation in Europe."
TwentyFour Asset Management is the company's portfolio management.
Shares in the company were up 4.5% to 73.17 pence each in London on Tuesday afternoon.
By Sophie Rose, Alliance News reporter
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