Dhe bank earthquake can be clearly felt on the financial markets. Funds managed by BlueBay Asset Management and the Allianz subsidiary Pacific Investment Management Co are particularly affected by the fact that risky subordinated bonds from Credit Suisse Group AG worth more than CHF 16 billion have become worthless.
BlueBay’s $2 billion Financial Capital Bond fund and Pimco’s $1.3 billion Preferred and Capital Security fund each fell more than 8 percent in the week ended Monday, market data showed. They were the two worst-performing mutual funds around the world during that period.
According to Bloomberg data, both funds held so-called Additional Tier 1 bonds from the Swiss bank, the write-down of which sent shockwaves through the markets. Pimco is the largest holder of Credit Suisse AT1 bonds with approximately $807 million in assets. BlueBay came to a volume of around 134 million dollars in the papers at the end of November.
A Pimco representative declined to comment on the matter. A spokeswoman for London’s BlueBay did not immediately respond to a request for comment on the fund’s losses. The Pimco fund fell more than 4 percent on Monday alone, posting its biggest one-day drop since March 2020. In the week ending Monday, it was down 8.4 percent, according to the data. BlueBay’s fund slipped 9.5 percent this week.
