Investors Who Directly Bought Credit Suisse Bonds Through Their Financial Advisors May Have a Claim for Investment Fraud
NEW YORK, NY, March 23, 2023 /24-7PressRelease/ — Zamansky LLC is investigating potential investment fraud claims by investors who suffered losses due to the $17 billion write-down of Credit Suisse Group AG’s (Credit Suisse) contingent convertible (CoCo) bonds, also known as Additional Tier 1 (AT1) bonds. CoCo bonds were sold to some U.S. investors directly, while others may have exposure through preferred or other fixed-income funds.
On March 19, 2023, UBS agreed to acquire Credit Suisse in an all-stock deal, assisted by a $100 billion line of liquidity from the Swiss National Bank. As a result, the extraordinary government support triggered a complete write-down of the nominal value of $17 billion of all Credit Suisse AT1 or CoCo bonds. These hybrid fixed-income securities were issued in the wake of the 2008 Financial Crisis to help banks satisfy capital requirements and became attractive to investors and funds for their high yield and seemingly remote risk of conversion.
Investors who directly bought Credit Suisse bonds through their financial advisors such as Morgan Stanley, UBS or Merrill Lynch may have a claim for investment fraud if the bonds were unsuitable for the investor or the risks were not disclosed. Additionally, investors who have indirect exposure through a fund or managed strategies such as the Morgan Stanley Contingent Convertible Bond Strategy, the Invesco AT1 Capital Bond UCITS ETF (AT1), the WisdomTree AT1 Coco Bond ETF (CCBO), the BlueBay Financial Capital Bond fund, PIMCO Preferred and Capital Security Fund (PFINX), Nuveen Preferred & Income fund (JPT), or other convertible or preferred bond funds may have a similar claim for investment fraud.
Zamansky LLC is a securities arbitration law firm founded by Jake Zamansky, one of the preeminent lawyers in the United States for securities fraud matters and FINRA arbitration. He has more than three decades of experience in securities litigation and has recovered millions of dollars for his clients. Zamansky LLC represents individual and institutional clients in cases against Wall Street firms for investment fraud losses.
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