Credit Suisse probes collapsed Greensill-linked funds – Bloomberg

Credit Suisse Group AG has begun an internal investigation into the collapse of $10 billion worth of supply chain finance funds linked to Greensill Capital (UK) Ltd. and made personnel changes within its asset management unit, Bloomberg News reported.

The Swiss bank contacted external firms to handle inquiries from regulators about the collapsed funds, sources familiar with the matter said. The lender is now liquidating the strategy and is set to make the first payments, which amount to about 80% of available cash and equivalents, to investors this week, according to the report.

Credit Suisse has suspended Michel Degen, head of asset management in Switzerland and EMEA, Luc Mathys, head of fixed income for the unit, and another manager who oversaw the funds. Filippo Rima will replace Degen on an interim basis.

Credit Suisse is winding down the suspended supply chain funds after doubts were raised over their valuation. This prompted Greensill to file for administration and seek a partial sale to Apollo Global Management Inc., though that deal is now reportedly unlikely to materialize.

Credit Suisse also appointed receivers to recover a bridge loan of about $140 million made to Greensill's Australian holding company.