Apollo Global Management and Pimco have teamed up and are close to acquiring Credit Suisse’s securitised-products group as the Swiss bank prepares to significantly downsize its operations in the US, according to people briefed on the talks.
The sale of the unit is expected to be announced at Credit Suisse’s strategy update on Thursday, the people added. The Swiss bank is also planning to sell several other assets, including parts of its domestic bank, as it attempts to close a capital hole of about SFr4.5bn (US$4.5bn).
The New York-based securitised products business — which packages debts like mortgages and loans for yachts before selling them on as securities — would reduce capital burdens on Credit Suisse’s balance sheet but also sever one of the bank’s most profitable business lines.