UBS - Credit Suisse sold off exposure to Evergrande due to risk concerns - FT

Credit Suisse (NYSE:CS), at one time the biggest international underwriter of China Evergrande (OTCPK:EGRNF) (OTCPK:EGRNY) bonds, sold off all its exposure to China's second-largest property developer late last year, the Financial Times reports, citing people familiar with the decision. During the past 10 years, the Swiss bank helped arrange $4.6B of dollar bonds for Evergrande, ~13% of the total and second only to China Securities Co., according to Dealogic data. The bank, though, hasn't underwritten any of Evergrande's debt for two years. At least $4.2B of the bonds that Credit Suisse arranged are still outstanding, FT said. Those were sold to counterparties such as hedge funds, asset managers, and the bank's ultra-wealthy private clients, who could now bear the burden if Evergrande defaults on its international debt. Credit Suisse's qualms over Evergrande started at least three years ago, FT said, citing sources within the bank. One red flag went up with Evergrande

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Credit Suisse sold off exposure to Evergrande due to risk concerns - FT