|Bid||10.53 x 2900|
|Ask||10.54 x 28000|
|Day's range||10.41 - 10.57|
|52-week range||6.47 - 14.12|
|Beta (5Y monthly)||1.61|
|PE ratio (TTM)||N/A|
|Forward dividend & yield||0.14 (1.35%)|
|Ex-dividend date||07 May 2020|
|1y target est||N/A|
European stock markets are set to open higher Monday, with investors looking at the possibility of more stimulus as the new earnings season kicks off. At 2:05 AM ET (0605 GMT), the DAX futures contract in Germany traded 1.1% higher. CAC 40 futures in France were up 1.4%, while the FTSE 100 futures contract in the U.K. rose 0.6%.
Credit Suisse Group AG agreed to pay $15.5 million to settle a lawsuit accusing it of defrauding shareholders about its risk appetite and management before taking $1 billion of writedowns on souring debt, court filings on Friday show. The preliminary settlement of the proposed class action by holders of the Swiss bank's American depositary receipts from March 2015 to February 2016 requires approval by U.S. District Judge Lorna Schofield in Manhattan federal court. Credit Suisse took two writedowns in early 2016 on $4.3 billion of collateralized loan obligations and distressed debt, contributing to its first full-year loss since the 2008 global financial crisis.
Credit Suisse wants to raise its China securities joint venture stake to 100% and increase its market share after getting the regulatory green light to take a majority holding, the head of its Asia business said. Switzerland's second-largest bank is also looking to hire more staff and invest in China, the world's second-biggest economy, as its most significant business opportunity in the world, its APAC boss Helman Sitohang told Reuters. China has gained in relevance for Credit Suisse and other international banks after Beijing fast-tracked the opening of its financial markets to foreigner investors.
(Bloomberg) -- Credit Suisse Group AG has embarked on a wide-ranging assessment of its risk controls as Chief Executive Officer Thomas Gottstein seeks to bolster oversight at Switzerland’s second-biggest lender.The bank is considering centralizing risk management processes because they are too fragmented, often cutting across several business units, people familiar with the matter said. The risk structure is currently a topic of discussion at the executive committee level, the people said, asking not to be identified as the matter is private.Gottstein, who took over in February in the wake of a damaging spying scandal that led to the ouster of Tidjane Thiam, is working to restore calm after a turbulent phase. The bank has worked on deals linked to Luckin Coffee Ltd. and Wirecard AG, two companies embroiled in high-profile scandals. Credit Suisse has also started an internal probe into supply chain finance funds with links to Masayoshi Son’s SoftBank Vision Fund.“Credit Suisse has a strong risk organization with an excellent track record,” the bank said in a statement. “Notwithstanding this, as part of good governance, we are constantly looking at ways to further improve effectiveness and efficiency across our second line of defense structures, including in the risk organization.”The bank said this is not linked to what it called “unfounded media reports” about Credit Suisse’s supply chain finance funds and its role in helping SoftBank cut its exposure to Wirecard.Warner’s ReviewThe review builds on work by Chief Risk Officer Lara Warner, who has been seeking to make her mark since being promoted in a shakeup last year. She previously served as chief financial officer and operating officer at the investment bank, and led a review in 2018 into how the bank handled an alleged sexual assault dating back to 2010.One of the early moves under Warner as risk chief was to change the composition of the global reputational risk committee last fall, which decides on potentially harmful client relationships and transactions that have been escalated from one of the bank’s divisions, according to a person familiar with the matter.Since then, the scandals at Luckin Coffee and Wirecard have further underscored the need for efficient controls at lenders including Credit Suisse. The Swiss bank organized a margin loan for Luckin Coffee founder Lu Zhengyao. In April, Credit Suisse took a large hit in its Asian business, setting aside about $100 million for soured loans which mostly related to three cases, the largest of which was Luckin.SoftBank LinksThe bank also helped sell $1 billion of Wirecard-linked securities last year after questions were raised about the German company’s accounting. SoftBank had initially agreed to buy the convertible debt, but then cut its exposure through a series of transactions. Wirecard last month filed for insolvency, the culmination of a stunning accounting scandal that has rattled financial circles.Its ties to SoftBank could also become a factor in an internal Credit Suisse probe of its supply chain funds. The investment vehicles hold short-term corporate loans and finance a number of startups backed by the SoftBank Vision Fund. The loans are sourced by Greensill Capital, which is also backed by SoftBank.The Financial Times reported that SoftBank invested more than $500 million into the funds, raising questions about a potential conflict of interest. Credit Suisse has denied that there was such a conflict.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Credit Suisse Group AG has started a probe into funds that invest in loans arranged by billionaire financier Lex Greensill and are backed by Masayoshi Son’s SoftBank Vision Fund.Switzerland’s second-largest bank is looking into its supply-chain finance funds, which hold short-term corporate loans and finance a number of startups backed by the Vision Fund, according to a person familiar with the matter, who asked not to be identified because the information is private. The loans are sourced by Greensill Capital, which is also backed by Softbank.“We are reviewing certain aspects of the matter, as is standard practice in similar circumstances,” a spokesman for the Zurich-based lender said in an emailed statement.Credit Suisse’s Chief Executive Officer Thomas Gottstein is stepping up the bank response to investors’ scrutiny as the Financial Times reported that SoftBank invested more than $500 million into the funds, raising questions about a potential conflict of interest. The manager of similar vehicles at GAM Holding AG, Tim Haywood, was dismissed last year for misconduct.“There is no conflict of interest: Investments made in the funds and the investment decisions made by the funds are separate. Credit Suisse Asset Management has full discretion on credit selection. In addition, strict investment and diversification rules are applied and the funds are only distributed to qualified investors,” Credit Suisse said in a statement last week.Former Morgan Stanley banker Greensill partnered with Credit Suisse in 2017 to create bespoke investment funds that bought corporate invoices. The idea is for such funds to buy loans -- arranged by middlemen such as Greensill -- so companies can pay their bills early while boosting cash flow. The business accelerated last year when the SoftBank Vision Fund invested almost $1.5 billion in Greensill Capital.Four of the 10 largest bets of Credit Suisse’s main supply-chain finance fund were Vision Fund companies at the end of March, including Oyo and Fair, making up 15% of its $5.2 billion assets, the FT wrote.Swiss financial news portal Insideparadeplatz reported the news of the investigation earlier on Tuesday.Supply-chain finance has been a fast-growing niche area for Credit Suisse, which managed 437.9 billion Swiss francs ($454 billion) at the end of last year in its asset management unit. Assets in the bank supply-chain funds rose last year as Greensill sought companies to finance before packaging the short-term loans into bundles and selling them to institutional investors.While the funds quickly drew billions in investment since inception, they have been hit by outflows throughout the pandemic crisis. Credit Suisse clients pulled $1.6 billion from the funds earlier this year, as they rushed to free up cash in the market rout spurred by the spread of coronavirus, Bloomberg reported in April.(Updates with Credit Suisse comment in third paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- The demise of an exchange-traded note is often accompanied by accusations, investigations and heavy losses. Rarely, if ever, has it involved the year’s best-performing product and assets well north of $1 billion.The shock decision by Credit Suisse Group AG to drastically slash its ETN business, delisting nine securities worth nearly $3 billion, is the most powerful display yet of the existential crisis engulfing this corner of America’s $4.4 trillion market for exchange-traded products.The move -- which the Swiss bank says is to better align its products with growth plans -- comes as coronavirus-fueled turmoil throws a harsh new light on ETNs. They frequently use derivatives to amplify returns, making them vulnerable to extreme market events. Already this year issuers including UBS Group AG and Citigroup Inc. have liquidated products.The scale of the Credit Suisse move has sent a shock wave through the industry, however. Unless investors redeploy their cash into similar notes, the $10.8 billion ETN market is about to shrink by more than a quarter.“That would not seem to portend especially well for them being a central part of the industry going forward,” said Jeffrey Ptak, global director of manager research for Morningstar Inc.The highest-profile loss will be the VelocityShares Daily 2x VIX Short-Term ETN (TVIX), one of the most-popular notes for betting on volatility in U.S. stocks. At the time of this week’s announcement, it boasted $1.5 billion of assets and year-to-date returns of more than 200% -- the best performance among almost 2,400 ETPs in the U.S.A spokeswoman for Credit Suisse declined to comment further on the reasons for the delistings, and it remains to be seen how the disappearance of products such as TVIX will impact the assets they track.But for the ETN ecosystem it’s the latest dramatic twist in a year of reckoning, with analysts increasingly questioning the viability of such products even as the ETF industry continues its astronomical growth.Unlike ETFs, ETNs are unsecured debt obligations issued by banks that are backed by the issuer rather than the assets the product is linked to. They’ll often be used as a way to get leveraged exposure to asset classes that may not fit into the confines of a traditional fund -- a practice coming under increased scrutiny from regulators.“ETNs are quintessentially niche and, at this point, are not the first name in reliability,” said Ptak.The notes earned a black eye after a massive spike in expected stock volatility blew up multiple products in February 2018, with a feedback loop emerging that saw ETNs exacerbate the damage.Well before that, TVIX was no stranger to controversy. At one point in 2012, the VIX-linked note plunged by 50% in two days. Credit Suisse had frozen new share creation citing internal limits on the size of the product, and when it started issuing shares again the price of the ETN crashed.The bank’s decision to finally pull the plug is a warning sign about the ETN space as a whole, according to CFRA Research’s Todd Rosenbluth.“That certainly sends a signal to investors that perhaps these products don’t have the viability,” said Rosenbluth, CFRA’s head of ETF and mutual fund research. “The delisting risk is something people tend not to pay attention to, and they really should.”TVIX has emerged as a go-to vehicle for individual investors looking to wager on the stock market’s swings.The number of users holding the note on trading platform Robinhood climbed to 26,000 this month, according to Robintrack, a website unaffiliated with the site that uses its data to show trends in positioning. That compares to under 3,000 at the beginning of February.It seems likely this factored into the Credit Suisse decision. Leveraged ETNs can significantly outperform over short periods, but experience huge deviations from the assets they track at times of turbulence and underperform over the long term thanks to daily price adjustments.In other words, such ETNs will trend toward zero if purchased as a buy-and-hold investment, according to Nate Geraci, president of investment-advisory firm the ETF Store. Renewed regulatory scrutiny and the risk that retail investors don’t fully appreciate those nuances may have pushed banks away from the space, he said.“Do some of those investors understand the risk? Sure. Do they all? There’s no question that they do not,” Geraci said. For issuers “it’s reputation risk, it’s their ability to hedge the underlying exposure, and to a certain degree, some of these banks may just want to clean up their balance sheet,” he said.TVIX had gained 204% this year through Friday, but an investor who bought at the start of 2019 and sold at the end would have lost almost everything. The product has also regularly conducted reverse share splits -- a practice of reducing the number of shares outstanding in order to increase their value, usually to avoid delisting.Still, thanks to its expense ratio of 1.65%, the ETN was undoubtedly a good earner for Credit Suisse. That may be one reason the bank hasn’t killed the products outright -- instead it says the nine notes can still trade on an over-the-counter basis after their delisting next month.Meanwhile, analysts are split about what happens next.As Credit Suisse and other banks retreat from the market, Ptak at Morningstar reckons it’s unlikely that other issuers will step up to fill the void, while Rosenbluth expects the number of ETNs to continue to dwindle over the next five years.But TVIX’s popularity could motivate other issuers to launch similar volatility-linked products, in the eyes of Greenwich Associates’s Ken Monahan. Demand is still robust: the $1 billion iPath Series B S&P 500 VIX Short-Term Futures ETN, ticker VXX, absorbed its largest one-day inflow since March as stocks extended their surge.“My guess is that someone will pick it up,” said Monahan, a senior analyst covering market structure and technology. “The difficulty is that a firm like Credit Suisse starts out with a huge advantage because it has a huge distribution network. But my guess is the independent shops will try.”(Adds VXX inflow in penultimate paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
A contrarian bet on the stock market is down sharply after word of plans to delist it. VelocityShares Daily 2x VIX Short-Term ETN (TVIX) tumbled more than 12% after Credit Suisse (SIX:CSGN) AG said it would delist those notes, among other VelocityShares. Credit Suisse said the move to delist it was to “better align its product suite with its broader strategic growth plans.”
(Bloomberg) -- Credit Suisse Group AG will delist almost $3 billion in exchange-traded notes in a lineup revamp, including a leveraged product that has more than tripled this year.The $1.5 billion VelocityShares Daily 2x VIX Short-Term ETN (TVIX), which seeks to provide twice the daily return of the S&P 500 VIX Short-Term Futures Index, is among the nine products to be pulled by the firm. The move is part of a “continuing effort to monitor and manage” exchange-traded offerings, Credit Suisse said in a statement Monday.Most of the ETNs being delisted are leveraged, which means they use derivatives to amplify returns of the securities they track. Those products have come under scrutiny in recent months as the coronavirus roiled markets. Credit Suisse’s move followed similar decisions by UBS Group AG and Citigroup Inc. to liquidate several of their leveraged commodity ETNs, while other issuers have opted to reduce leverage.A Credit Suisse spokeswoman declined to comment further.The delistings will become effective on July 12, and the ETNs may continue to trade on an over-the-counter basis.Other affected products include:VelocityShares 3x Long Gold ETN (UGLD)VelocityShares 3x Long Silver ETN (USLV)VelocityShares 3x Inverse Gold ETN (DGLD)VelocityShares 3x Inverse Silver ETN (DSLV)VelocityShares 3x Long Natural Gas ETN (UGAZ)VelocityShares 3x Inverse Natural Gas ETN (DGAZ)VelocityShares Daily Inverse VIX Medium Term ETN (ZIV)VelocityShares VIX Short Term ETN (VIIX)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Economic and financial conditions for the Swiss banking sector have deteriorated markedly due to the COVID-19 pandemic, the Swiss National Bank said on Thursday, but big banks UBS <UBSG.S> and Credit Suisse <CSGN.S> are favourably placed to manage challenges. "The simultaneous deterioration in the economic situation in all regions of the world, together with the unusually high level of uncertainty, poses significant challenges for the two globally active Swiss banks, Credit Suisse and UBS," the central bank said in its 2020 financial stability report. UBS and Credit Suisse had until the end of 2019 to prepare so-called resolution plans that would prevent taxpayers from having to bail them out in the event of a crisis.
European stock markets are set to edge lower at the open Thursday, as the resurgence of Covid-19 infections raises concerns over the speed of the global economic recovery. At 2 AM ET (0600 GMT), the DAX futures contract in Germany traded 0.4% lower. France's CAC 40 futures were down 1.5%, while the FTSE 100 futures contract in the U.K. fell 1.5%.
Credit Suisse <CSGN.S> is banking on risk-taking billionaires to drive revenue growth at its wealth management division. Philipp Wehle, the head of Credit Suisse's international wealth management division, estimates this sort of activity could bring in around $400 million in additional revenues between now and the end of 2022. "My ambition for strategic clients is to double the growth contribution over the next three years," said the German native, who took over as Credit Suisse's top banker for international jet-setters last July after former boss Iqbal Khan left to head wealth at UBS.
Credit Suisse (CS) to raise ownership stake in Credit Suisse Founder Securities (CSFS) following the removal of Chinese regulators' restrictions on the ownership of local venture partners.
Credit Suisse <CSGN.S> is seeking to overturn a court ruling rejecting the bank's bid to block an auditor appointed by Switzerland's financial supervisor as part of its probe into a spying scandal, it said on Friday. Switzerland's second-biggest bank had sought to scuttle watchdog FINMA's appointment of Thomas Werlen, of international law firm Quinn Emanuel Urquhart & Sullivan, on grounds the firm and Werlen lacked sufficient independence. "Credit Suisse can confirm that it is having the ruling of the Federal Administrative Court reviewed by the Federal Supreme Court," the bank said in a statement after the Tages-Anzeiger newspaper reported the appeal.
A U.S. judge on Thursday said institutional investors, including BlackRock Inc <BLK.N> and Allianz SE's <ALVG.DE> Pacific Investment Management Co, can pursue much of their lawsuit accusing 15 major banks of rigging prices in the $6.6 trillion-a-day foreign exchange market. U.S. District Judge Lorna Schofield in Manhattan said the nearly 1,300 plaintiffs, including many mutual funds and exchange-traded funds, plausibly alleged that the banks conspired to rig currency benchmarks from 2003 to 2013 and profit at their expense. "This is an injury of the type the antitrust laws were intended to prevent," Schofield wrote in a 40-page decision.
The banks that lent $518 million(423.62 million pounds) to Luckin Coffee <LK.O> Chairman Charles Zhengyao Lu have started court proceedings to liquidate his private company, a government gazette for the British Virgin Islands showed. The notice, published on Thursday and reproduced in Hong Kong media on Friday, names Credit Suisse as the security agent, which means it will act on behalf of the banks behind the loan. Credit Suisse <CSGN.S> has proposed Grant Thornton be appointed as liquidators of Haode Investments Co., Mr Lu's private company, which is registered in the Virgin Islands.
Swiss regulators have requested electronic messaging data from the mobile phones of several Credit Suisse managers and supervisory board directors as part of a probe into spying at the bank, three people familiar with the matter said. Switzerland's markets watchdog FINMA is examining the culture and governance at one of Europe's largest banks and whether management control failures allowed spying on former executive board members Iqbal Khan and Peter Goerke, the sources told Reuters. The sources did not identify which managers and board directors FINMA was seeking the mobile phone data for.
Credit Suisse (SIX:CSGN) analyst Erin Wright maintained a Hold rating on Covetrus (NASDAQ:CVET) Inc on Thursday, setting a price target of $10, which is approximately 17.90% below the present share price of $12.18.
Credit Suisse (SIX:CSGN) analyst Curt Woodworth maintained a Hold rating on Turquoise Hill Resources (NYSE:TRQ) Ltd on Wednesday, setting a price target of C$0.9, which is approximately 67.60% above the present share price of $0.54.
Credit Suisse (SIX:CSGN) analyst Brad Zelnick maintained a Hold rating on Medallia (NYSE:MDLA) Inc on Wednesday, setting a price target of $22, which is approximately 10.82% below the present share price of $24.67.
Credit Suisse (SIX:CSGN) analyst John Walsh maintained a Hold rating on Ingersoll Rand (NYSE:IR) on Wednesday, setting a price target of $30, which is approximately 3.13% above the present share price of $29.09.
Credit Suisse (SIX:CSGN) analyst Lauren Silberman maintained a Hold rating on Wendy's (NASDAQ:WEN) on Thursday, setting a price target of $21, which is approximately 11.64% above the present share price of $18.81.