Friday, 30 January 2015
Last updated 10 hours ago
Sep 25 2009 | 12:35pm ET
Credit Suisse, which last month bought a Citadel Investment Group claim against bankrupt investment bank Lehman Brothers, is now trying to sell a $1 billion claim of its own.
The Swiss bank is trying to offload a claim tied to about 20,000 derivative contracts to which Lehman, which collapsed last year, was a counterparty, Bloomberg News reports. The claim was one of more than 16,000 filed against Lehman by a court-imposed deadline this week.
Credit Suisse is in talks with hedge funds and private equity firms about the $1 billion claim, Bloomberg reports. It comes as both trading in Lehman claims and the amount claimants are getting for them is steadily rising. Last week, Morgan Stanley sold a $1.3 billion claim for 38 cents on the dollar; Bloomberg reports than other Lehman claims are fetching about 40 cents on the dollar.
Credit Suisse bought a $423 million claim from Citadel in August as the Chicago hedge fund giant’s administration business was pursuing a mandate from Lehman’s administrators. Unlike Citadel, many hedge funds have been active buyers of Lehman claims, including Elliott Management, King Street Capital Management, Paulson & Co. and Silver Point Capital.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…