Goldman preparing claims trading for wiped-out Credit Suisse debt - report

Goldman Sachs traders are reportedly preparing to take bids on claims against Credit Suisse’s riskiest bonds after the takeover of the Swiss lender by UBS wiped out about CHF16bn ($17.3bn) of the debt.

Bloomberg cited people with knowledge of the matter as saying that clients were told in a message late on Sunday that the New York-based bank would soon start trading claims in the additional tier 1 bonds.

Investors looking to buy such claims would be making a bet that they can ultimately recover some value, potentially through litigation.

The Swiss financial regulator known as Finma said on Sunday that Credit Suisse’s takeover by UBS would trigger a "complete write-down" of the AT1 debt, a type of security introduced after the global financial crisis that’s designed to take losses if a bank’s capital ratios drop below a certain level.