Bond giant PIMCO lost about $340 million on a category of Credit Suisse bonds that were wiped out by the takeover by UBS (UBSG.S), with the American investment manager’s overall exposure to the Swiss lender running into billions, a source familiar with the situation said.
Swiss authorities on Sunday decided to wipe out some $17 billion worth of Credit Suisse’s Additional Tier 1 (AT1) debt under a deal which saw shareholders receive $3.23 billion. Shareholders usually rank below bondholders in terms of who gets paid when a bank or company collapses.
Source : Credit Suisse AT1 Bond Write-Off Results in $340 Million Loss for PIMCO – Source