The Business Times

Credit Suisse to shift some Swiss mortgages into fund

Published Wed, Feb 8, 2017 · 08:25 AM

[ZURICH] Credit Suisse, Switzerland's second-biggest bank, will shift some Swiss mortgages into a new investment fund to be run by an independent asset manager, it said on Wednesday.

The move could free up capital on its balance sheet it can use to promote company loans, Matthias Wyder, head of portfolio management in its Swiss corporate lending business, told the Finanz und Wirtschaft newspaper.

He said the fund volume could reach 200 million Swiss francs ($US200.2 million) by the end of next month and 500 million by year's end.

It could eventually reach 3 billion francs, or around 10 per cent of its mortgage volume for income-producing properties, he was quoted as saying.

The Swiss Mortgage Fund I being offered to institutional investors will include mortgages on single-family dwellings, condominiums and multi-family dwellings as well as business premises, Credit Suisse said in a statement.

The fund's portfolio will be managed by Tavis Capital AG. Client relationships with mortgage holders will remain with Credit Suisse.


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