Credit Suisse; 1st loss in 5 years

Credit Suisse, Switzerland's #2 bank,

reported its first loss ($2.1 billion); in almost five years on $5.2 billion of writedowns. The bank had writedowns of

$2.66 billion on CDOs, $1.68 billion on leveraged finance and $848 million on commercial mortgage- backed securities.

By the end of Q1, the bank has net exposure in

CDO $700 million; residential mortgage-backed securities $5.5 billion; $20.8 billion in leveraged finance, and $19.3 billion in commercial mortgage securities.

Joerg de Vries-Hippen, chief investment officer for European equities at Allianz Global Investors:

For Credit Suisse "the only positive thing is that they are not announcing a capital increase, at least not yet."

Hattip to Bloomberg.

Comments