Erez Law is currently investigating Credit Suisse and its brokers who unsuitably recommended Credit Suisse contingent convertible bonds (CoCo bonds) to their clients, resulting in investment losses related to due diligence failures in AG bonds, including:
- Credit Suisse 7.500% Perpetual Corp. AT1 (Additional Tier) Bonds
- CS 5.100% Perpetual Corp (USD)
- CS 5.250% Perpetual Corp (USD)
- CS 5.625% Perpetual Corp (SGD)
- CS 6.250% Perpetual Corp (USD)
- CS 6.375% Perpetual Corp (USD)
- CS 7.250% Perpetual Corp (USD)
- CS 7.500% Perpetual Corp (USD)
- CS 9.750% Perpetual Corp (USD)
In March 2023, UBS Financial Services and Credit Suisse merged, and in the process wrote off the $17.2 billion Credit Suisse CoCos, including the Credit Suisse 7.500% Perpetual Corp. AT1 and other CoCo bond offerings. The bank’s shareholders will receive $3.23 million in payments, while investors in these bonds may experience significant investment losses in the future.
Credit Suisse Bond Risks
CoCo bonds are perpetual, meaning they never mature and would remain outstanding until they are changed into equity or called by the issuing institution.
Cross between a bond and a stock, AT1 bonds are high-yield investments that have the traits of equity and debt instruments and are utilized to support banks in raising capital to satisfy regulations brought upon by the financial crisis and bailouts of 2008. AT1 bonds are contingent convertible and can be converted into equity when banks face with specific events.
Popular with institutional investors, Credit Suisse 7.500% Perpetual Corp AT1 bonds are not recommended for inexperienced and conservative investors, including retirees. In fact, their risk level is so elevated that they may not been a suitable investment for select wealth or accredited investors dependent on their age, portfolio assets, financial goals, and risk tolerance.
Investors in AT1 bonds have the potential to earn a higher yield than most similar bonds, the investments are far more risky, including liquidity risks, counterparty risks in the event of bankruptcy and the like, political risks, and operations risks associated with catastrophic events or failures.
Credit Suisse CoCo Bonds Investment Loss Options
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Credit Suisse may be liable for investment or other losses suffered by its customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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