While there, he pushed aggressively into risky corporate debt at the start of last year and traded at least $21 billion in junk debt by mid-March 2020. Credit Suisse last week said the Archegos writedown would push the bank to a 960m loss in the first three months of the year, even after it had enjoyed its strongest underlying quarter for a. Lemssouguer, who's in his early 30s, quickly climbed the ranks after joining Credit Suisse in 2014. Credit Suisses lackluster investment-banking numbers, and decision to slash costs within the division, has rivals 'dancing on their grave.' This is how one capital-markets banker described the. Former BlackRock trader Jeysson Abergel was just hired to join Mr.
The interest rate on the notes will be subject to reset over mid-swaps based on the Swiss benchmark rate SARON. Lemssouguer held investor presentations to raise money for his absolute return credit fund, which aimed to take advantage of distortions in credit markets with long and short positions, stressed opportunities, and the capability to single-name shorting, according to the presentation. Credit Suisse Group AG (CSG) yesterday priced CHF 525 million of Perpetual Tier 1 contingent write-down capital notes. The Zurich-based bank for now is only approving what it considers uncomplicated and straightforward fund strategies, according to one person. In the latest twist, its prime-brokerage co-heads John Dabbs and Ryan Nelson will step down immediately, according to a company memo Monday. "As a consequence both new and existing strategies will come under additional scrutiny, especially those that employ leverage."Ĭredit Suisse was forced to take a 4.4 billion Swiss franc ($4.8 billion) write-down tied to Archegos, removed risk chief Lara Warner and replaced veteran Eric Varvel as head of asset management. "There is without doubt a shakeup going on in the risk department right now," said Mark Holman, London-based chief executive officer at TwentyFour Asset Management. The debacles triggered sweeping changes by CEO Thomas Gottstein, who cut the bank's dividend, overhauled its leadership and is considering spinning off the asset management unit. The reversal comes as Credit Suisse is trying to move past a crisis of confidence triggered by the collapse of family office Archegos and the unraveling of supply chain firm Greensill in quick succession.
The fund targeted as much as $500 million in assets, according to an investor update seen by Bloomberg News.Ī spokesman for Credit Suisse and Mr.
Lemssouguer back from Ken Griffin's hedge fund Citadel and gave him a new role overseeing the launch of a credit strategy in the asset unit. The pause marks a shift for Credit Suisse, which last year lured Mr. Credit Suisse Group paused the launch of a credit fund run by star trader Hamza Lemssouguer as it dials back risk in the aftermath of the twin implosions of Archegos Capital Management and Greensill Capital, according to people familiar with the decision.