Winning bidder will get Credit Suisse ETF arm 'on the cheap' - Citi

Bidders for Credit Suisse's ETF arm will be getting it "on the cheap" as the sale is another example of a bank being forced to sell assets to strengthen its capital positions, according to Citi.

The sale of Credit Suisse's $17.2bn ETF business could raise about $150m for the Swiss bank, the note said. Credit Suisse put its ETF business up for sale earlier this year, with BlackRock and State Street among the firms that have bid for it, according to reports. Citi analyst William Katz said BlackRock has an "edge" over State Street as it could make more cost savings from Credit Suisse's ETF business, has stronger financial flexibility, and a history of purchasing smaller asset managers. It is unlikely State Street will buy Credit Suisse's ETF operations, said Katz. "State S...