(AWP) Die Credit Suisse (CSGN 7.43 +0.87%) has urged investors to destroy certain documents related to the securitization of credit risk, according to an article in the Financial Times. It is about loans to wealthy asset management customers who were secured with luxury yachts or private planes, for example.
According to the article, CS had securitized such credit risks and resold them to hedge funds and other investors, who were promised high interest rates. In the current week, these investors have been requested by letter from the major Swiss bank to “destroy and permanently delete” the information in connection with the transaction, writes the British business newspaper on Wednesday.
The FT refers to several people who would have received such letters. The request for the destruction of the documents is justified with a “data leak in the media”, the article continues. CS declined to comment on the article to news agency AWP.
According to an earlier FT report, risks related to $2 billion in loans had been outsourced to a group of hedge funds. The loans secured with yachts, planes, real estate or other assets went to Russian oligarchs, among others. Due to sanctions against Russia, there were defaults on loans in 2017 and 2018.
Credit Suisse, which has been under pressure for months, was last in negative headlines at the end of February because of the so-called “CS leaks”. Account data from more than 30,000 customers came into the possession of the media, some of which go back decades.