Several major CRE asset managers were among the largest holders of Credit Suisse bonds that were written off as part of the Swiss bank's takeover by UBS Group this week.
Because of the government support for the emergency merger of the two banks, the takeover results in a complete write-down of the bank's estimated $17B in Additional Tier 1 bonds, known as AT1 bonds, in order to increase core capital, Bloomberg reported.
Among major CRE players, Pacific Investment Management was the largest holder of the Credit Suisse bonds. Newport Beach, CA-based PIMCO holds about $807M of the securities, the report said. The notes are set to fall to zero.
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