Credit Suisee has has paid $400 million more to investors affected by the Greensill-linked fund mess, bringing the total to nearly $6 billion, Reuters reported.
Greensill Capital provided supply chain financing and filed for bankruptcy in March. Part of Greensill’s business model involved selling invoices from suppliers awaiting payment for goods as short-term assets. Credit Suisse was one of the firms handling those sales. Credit Suisse also was a shareholder in Greensill.
Within days of the bankruptcy, Credit Suisse froze four funds related to Greensill. At the time of the move, Credit Suisse Multi-Strategy Bond Fund, Credit Suisse Multi-Strategy Alternative Fund, Credit Suisse Qatar Enhanced Short Duration Fund and Credit Suisse Institutional Target Volatility Fund held about $1.2 billion.
See also: Greensill Collapse Prompts Credit Suisse To Freeze Four Funds
In its second-quarter financial results distributed July 29, Credit Suisse Group stated that it already had distributed $5.5 billion to investors and announced that the recently-made $400 million payment would follow.
Greensill’s unraveling touched off instant questioning about whether the company’s problems were unique or whether the entire supply chain finance sector harbored significant risks.
For more, see: Greensill: One-Off Unraveling Or Hint Of Supply Chain Financing Issues?
George Lee, chief operating officer at CCRManager, told PYMNTS: “Digitization [is] happening in pockets, but trade finance is highly interconnected and [an] interdependent system. Global efforts are still some distance away from being sufficiently collaborative, and this results in a disconnect between said pockets of digitalization.”
Moody’s Investor Service had warned in late 2019: “Users of financial statements may not be aware of a customer’s usage of reverse factoring (another term for supply chain financing), despite the potentially material consequences. The customer itself may not fully understand the added risk that accompanies the use of this financing technique.”
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PYMNTS DATA: 100 HEALTHCARE EXECS SPEAK OUT ON USING AI TO CURB FRAUD, WASTE AND ABUSE
About: Healthcare firms are losing 12 percent of their annual revenues to fraud, waste and abuse (FWA), yet few utilize artificial intelligence (AI) to address these issues due to cost concerns. In AI In Focus: Targeting Fraud, Waste And Abuse In Healthcare, PYMNTS surveyed 100 healthcare executives to learn how AI could actually help firms unlock savings by curbing costly false claims and false positives.
Credit score Suisee has has paid $400 million extra to traders affected by the Greensill-linked fund mess, bringing the entire to almost $6 billion, Reuters reported.
Greensill Capital offered provide chain financing and filed for chapter in March. A part of Greensill’s enterprise mannequin concerned promoting invoices from suppliers awaiting cost for items as short-term property. Credit score Suisse was one of many corporations dealing with these gross sales. Credit score Suisse additionally was a shareholder in Greensill.
Inside days of the chapter, Credit score Suisse froze 4 funds associated to Greensill. On the time of the transfer, Credit score Suisse Multi-Technique Bond Fund, Credit score Suisse Multi-Technique Various Fund, Credit score Suisse Qatar Enhanced Brief Length Fund and Credit score Suisse Institutional Goal Volatility Fund held about $1.2 billion.
See additionally: Greensill Collapse Prompts Credit score Suisse To Freeze 4 Funds
In its second-quarter monetary outcomes distributed July 29, Credit score Suisse Group acknowledged that it already had distributed $5.5 billion to traders and introduced that the recently-made $400 million cost would observe.
Greensill’s unraveling touched off prompt questioning about whether or not the corporate’s issues have been distinctive or whether or not the complete provide chain finance sector harbored vital dangers.
For extra, see: Greensill: One-Off Unraveling Or Trace Of Provide Chain Financing Points?
George Lee, chief working officer at CCRManager, advised PYMNTS: “Digitization [is] occurring in pockets, however commerce finance is extremely interconnected and [an] interdependent system. International efforts are nonetheless a long way away from being sufficiently collaborative, and this ends in a disconnect between mentioned pockets of digitalization.”
Moody’s Investor Service had warned in late 2019: “Customers of monetary statements might not be conscious of a buyer’s utilization of reverse factoring (one other time period for provide chain financing), regardless of the doubtless materials penalties. The shopper itself could not absolutely perceive the added danger that accompanies using this financing approach.”
——————————
PYMNTS DATA: 100 HEALTHCARE EXECS SPEAK OUT ON USING AI TO CURB FRAUD, WASTE AND ABUSE
About: Healthcare corporations are dropping 12 p.c of their annual revenues to fraud, waste and abuse (FWA), but few make the most of synthetic intelligence (AI) to handle these points resulting from price issues. In AI In Focus: Focusing on Fraud, Waste And Abuse In Healthcare, PYMNTS surveyed 100 healthcare executives to learn the way AI may really assist corporations unlock financial savings by curbing expensive false claims and false positives.
