We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Credit Suisse (CS) to Face $450M Charge on York Capital Stake
Read MoreHide Full Article
Credit Suisse expects to incur $450 million as impairment charges for its stake in York Capital Management, a global alternative investment firm, as the latter is winding down its European hedge funds business. This move is being taken to focus more on longer duration assets, such as private equity, private debt and collateralized loan obligations.
Headquartered in New York, York Capital was founded by Jamie Dinan in 1991. It represented nearly 1% of the CHF 438 billion assets under management in the asset management business of Credit Suisse as of December 2019.
Post wind-down, York Capital’s U.S. hedge fund will likely turn into a vehicle, mainly managing internal money. York Capital will also spin out its APAC business as a new and separate hedge fund in 2021. Credit Suisse expects to have a continuing interest in this fund.
The Swiss bank expects its fourth-quarter 2020 common equity tier 1 ratio to be impacted by about 7 basis points due to this impairment. Notably, the company informed that despite this charge, it is well poised to pay dividends and capital distributions in 2020 and 2021, as planned.
Credit Suisse continues to look for opportunities, including M&As. Per a Reuters article, which cited comments made at a Bloomberg financial conference, CEO Thomas Gottstein would undertake acquisitions, specifically in its core wealth management business.
The article quoted Gottstein, "Our strategy is principally based on organic growth, not inorganic growth, but we also are always open and opportunistic to look at acquisition opportunities, especially in private banking."
Earnings estimates for the current year for Bank of Montreal (BMO - Free Report) have moved 3.4% north over the past 60 days. The company’s shares have gained 47.5% over the past six months. It currently has a Zacks Rank of 2 (Buy).
UBS Group AG (UBS - Free Report) has witnessed a 19.7% upward earnings estimate revision for the current year in the past 60 days. This Zacks Rank #2 stock has gained 40.7% over the past six months.
The Bank of N.T. Butterfield & Son Limited’s (NTB - Free Report) 2020 earnings estimates have moved 6.2% north over the past 60 days. The company’s shares have rallied 37.1% over the past six months. It carries a Zacks Rank of 2 at present.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
Credit Suisse (CS) to Face $450M Charge on York Capital Stake
Credit Suisse expects to incur $450 million as impairment charges for its stake in York Capital Management, a global alternative investment firm, as the latter is winding down its European hedge funds business. This move is being taken to focus more on longer duration assets, such as private equity, private debt and collateralized loan obligations.
Headquartered in New York, York Capital was founded by Jamie Dinan in 1991. It represented nearly 1% of the CHF 438 billion assets under management in the asset management business of Credit Suisse as of December 2019.
Post wind-down, York Capital’s U.S. hedge fund will likely turn into a vehicle, mainly managing internal money. York Capital will also spin out its APAC business as a new and separate hedge fund in 2021. Credit Suisse expects to have a continuing interest in this fund.
The Swiss bank expects its fourth-quarter 2020 common equity tier 1 ratio to be impacted by about 7 basis points due to this impairment. Notably, the company informed that despite this charge, it is well poised to pay dividends and capital distributions in 2020 and 2021, as planned.
Credit Suisse continues to look for opportunities, including M&As. Per a Reuters article, which cited comments made at a Bloomberg financial conference, CEO Thomas Gottstein would undertake acquisitions, specifically in its core wealth management business.
The article quoted Gottstein, "Our strategy is principally based on organic growth, not inorganic growth, but we also are always open and opportunistic to look at acquisition opportunities, especially in private banking."
Shares of this Zacks Rank #3 (Hold) company have gained 47.8% over the past six months compared with 34.6% growth of the industry. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Earnings estimates for the current year for Bank of Montreal (BMO - Free Report) have moved 3.4% north over the past 60 days. The company’s shares have gained 47.5% over the past six months. It currently has a Zacks Rank of 2 (Buy).
UBS Group AG (UBS - Free Report) has witnessed a 19.7% upward earnings estimate revision for the current year in the past 60 days. This Zacks Rank #2 stock has gained 40.7% over the past six months.
The Bank of N.T. Butterfield & Son Limited’s (NTB - Free Report) 2020 earnings estimates have moved 6.2% north over the past 60 days. The company’s shares have rallied 37.1% over the past six months. It carries a Zacks Rank of 2 at present.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>