Analysts at Barclays are extolling the virtues of Credit Suisse selling off its asset management business as the rumor mill grinds and major investors pile on the pressure for returns.
A sale of Credit Suisse’s asset management arm would unlock value, U.K.-based bank Barclays said in an analysts’ report released Wednesday.
The analysts said a sale could boost Credit Suisse’s capital by one to two percentage points and add 5.2 percent to the share price. They added that proceeds could be used for a share buyback.
However, in finews.com's view Swiss financial regulator Finma might have something to say about that, after having instructed Credit Suisse to create an extra capital cushion of almost 2 billion francs ($2.2 billion).
Casting Long Shadow
There is a great deal of speculation about the possible outcome of any potential sale. The combinations mooted include a merger with Deutsche Bank unit DWS, with UBS’ asset management, or with both, or a sale to leading European asset manager Amundi.
However, the collapse of Greensill casts a long shadow over Credit Suisse's money management unit. Several class actions have been filed in the US over Credit Suisse’s blocked Greensill funds. Potential purchasers might want to take a good look under the bonnet.
