By Dhirendra Tripathi
Investing.com – Credit Suisse (SIX:CSGN) stock (NYSE:CS) fell 0.5% during Friday’s premarket trading on a report that the Swiss bank is paying out a further $750 million to investors in its Greensill-linked supply chain finance funds.
The new repayments, planned for the week of July 5, will bring the total it has paid out to investors in the liquidation proceeds to $5.6 billion, Reuters said.
Credit Suisse has recovered some $6.1 billion of the $10 billion in bonds backed by the insolvent supply chain finance firm, its asset management arm told investors today.
The bank is focusing on repayment issues in some $2.3 billion loans provided by Greensill to three single counterparties, Reuters said. The biggest of them is the $1.2 billion exposure to Sanjeev Gupta's GFG Alliance.
Gupta was reported by the Financial Times on Friday to be in talks with Glencore (OTC:GLNCY) over a possible refinancing of his troubled steel empire.
In March, Credit Suisse’s asset management unit was forced to shut $10 billion of supply chain finance funds that invested in bonds issued by Greensill after the British firm lost credit insurance coverage, something that led to its filing for insolvency shortly afterward.
Separately on Friday,. the Eurozone's top bank regulator warned that it may impose tighter capital requirements for the leveraged loans business, an area that Credit Suisse is highly active in. While Credit Suisse is regulated by Swiss body Finma rather than the European Central Bank, the ECB's move would put pressure on other regulators in Europe to take similar action