The real estate fund of the Swiss bank says a successful capital hike in the fourth quarter could not be guaranteed
Credit Suisse property fund postpones capital hike. Source: flickr.com
Reuters informed that the management of Credit Suisse Real Estate Fund Green Property postponed a capital increase announced for the fourth quarter. The announced reason is high volatility for property funds and a deteriorating market environment.
The fund added that it will closely monitor the development of the market to decide on a possible implementation of the capital increase. Meanwhile, the bank is expected to provide updates on its overall strategy review when it releases its third-quarter results on Oct. 27.
Previously, Credit Suisse shares declined 19% due to the market fears that the bank’s shares would be further diluted through another capital raise. In addition, spreads of the bank’s credit default swaps (CDS), which protect investors against financial risks such as default, rose sharply Friday.
Therefore, senior Credit Suisse executives have been reassuring large clients, counterparties and investors about the bank’s liquidity and capital position.
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