from Pimco to BlackRock, the big funds damaged by the Corriere.it bond

If the stock exchanges celebrated the rescue of Credit Suisse on Tuesday, bought on Sunday for just 3 billion francs by its rival UBS, the losses for investors who bought the infamous Additional Tier 1 bonds (or AT1) are starting to reckon i.e. high-risk (and high-yield) subordinated bonds. In the merger plan with UBS, the Swiss supervisory authority Finma has in fact decided to cancel Credit Suisse’s At1 bonds for 16.3 billion francs, saving the shares, contrary to the conventional pecking order of bank resolution rules. A tear – harshly criticized by European regulators – which first amazed and then frightened a 275 billion dollar market and finally inflamed Cs investors, who are now considering legal action. The international law firm Quinn Emanuel Urquhart & Sullivan is planning a call with bond holders on Wednesday 22 March to explore the possible avenues for an appeal. But shareholders could also sue, on the recommendation of the Ethos Foundation, the adviser to pension funds and other relevant shareholders of CS, for the sale to UBS without the vote of the shareholders’ meeting.

Who has lost us

Among the biggest losers of the Credit Suisse bailout would be Pimco

the California-based fixed income manager with over $2 trillion in assets under management, and Invesco, the Atlanta-based, Wall Street-listed asset manager with nearly $1.5 trillion in assets under management. Together the two companies had invested more than $1.1 billion in risk-free bondscalculate Bloomberg. Pimco would have bonds at risk for 807 million dollars, Invesco for 370 million. But Pimco’s loss may have been offset in part by Monday’s rise in its nearly $3 billion senior bond portfolio.

Among the holders of risky bonds emerges Blackrock, the world’s leading manager with over 9 trillion assets under management, already among the strategic shareholders of Credit Suisself, with a 4.07% stake and 0.87% of the voting rights: he would be the holder of At1 bonds for 113 million. Furthermore, according to Morningstar data, according to the latest available portfolios – but in recent weeks the exposure may have changed – among the top 20 investors of the AT1 of the Cs, there are GAM funds (with an invested percentage of 4.8 % on approximately one billion euro of the fund), Nordea, Lazard and Kairos.

Italian banks and insurance companies

The main Italian banks and insurance companies, on the other hand, are not exposed to Credit Suisse, or very little

. According to financial sources, consulted by the agency Bloomberg UniCredit, Banco Bpm, Assicurazioni Generali, Mediobanca, Banca Generali do not hold Credit Suisse AT1 bonds, while Intesa Sanpaolo, Mediolanum, Unipol, instead have almost zero exposure.