Monday, November 27, 2023
HomePeer to Peer LendingJulius Baer to evaluation non-public debt enterprise

Julius Baer to evaluation non-public debt enterprise


Swiss wealth supervisor Julius Baer is about to evaluation its non-public debt enterprise amid ongoing losses ensuing from its publicity to Austrian property group Signa.

Julius Baer’s share value fell by 16 per cent final week after it revealed that it was taking a €73m (£63.4m) provision in opposition to losses in its credit score portfolio stemming from difficulties at Signa.

Signa’s €27bn property portfolio was hit arduous by rising rates of interest, and the agency is alleged to be near insolvency.

Julius Baer’s chief govt Philipp Rickenbacher admitted final week that Signa represents the only largest publicity within the wealth supervisor’s €628m non-public mortgage ebook.

Learn extra: DBS Group to originate non-public credit score offers

“We remorse {that a} single publicity has led to the latest uncertainty for our stakeholders,” Rickenbacher stated. He added that because of this, “we are going to evaluation our non-public debt enterprise and the framework wherein it’s carried out”.

Signa’s belongings embrace a stake in KaDeWe, Germany’s most well-known division retailer, and the Chrysler Constructing in New York.

Earlier this month, the property group appointed a brand new chair to restructure the group, changing the corporate’s founder René Benko.

Learn extra: Nomura faucets into non-public credit score increase

Signa is believed to owe roughly €13bn to banks and buyers, in accordance with an evaluation by JPMorgan.

Vontobel analyst Andreas Venditti stated whereas Julius Baer’s total capital place was robust, there have been nonetheless questions on its Signa publicity.

“The important thing query stays extremely unsure,” Venditti stated. “What collateral does Julius Baer maintain and the way a lot is it nonetheless price?”

Learn extra: Citigroup considers new direct lending technique



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