LGIM's Rees: Holding Credit Suisse AT1s was 'the wrong decision'

Strategic Bond fund

The wipe-out of $17bn of Credit Suisse AT1s prompted Legal & General Investment Management's Matthew Rees to rethink exposure to financials.

Rees, who is head of global bond strategies at LGIM and co-manager of the L&G Strategic Bond fund, told Investment Week holding Credit Suisse AT1s was "the wrong decision", as it had caused the fund "some losses". Swiss court registers 150 lawsuits against FINMA over Credit Suisse AT1 wipe-out He criticised Swiss regulator FINMA for its decision to "upset the credit hierarchy" by not wiping out equity before moving to bonds, but he did admit "we made the wrong decision to own them". At the time, the Bank of England and European Central Bank provided reassurance they would have stuc...