Apollo and PIMCO in the Running for Credit Suisse’s Securitized Products Group

Posted on 10/27/2022

Credit Suisse Group AG is in talks to sell its highly-prized securitized-products group (SPG) to investors Apollo Global Management and Pacific Investment Management Company (part of Allianz SE). The Wall Street Journal first reported about the development that said Credit Suisse will give details of the sale and other measures for a planned strategy change on Thursday.

Centerbridge Partners and Martello Re Limited, a Bermuda-domiciled Class E life and annuity reinsurer, had bid for the unit, according to the financial newspaper. In January 2022, Martello Re Limited was created with initial equity of US$ 1.65 billion and formed by the financial support of Massachusetts Mutual Life Insurance Company (MassMutual), Centerbridge Partners, Brown Brothers Harriman, and a group of institutional investors and family offices, including Hudson Structured Capital Management. Barings and Centerbridge act as asset managers for Martello Re.

Credit Suisse’s Board of Directors and senior management revealed in July 2022 that the Swiss bank was considering selling its SPG unit.

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