The National Pension Service (NPS) holds Credit Suisse (CS) bond investments amounting to 135.9 billion KRW. However, most of these are senior bonds, and since they do not hold any bonds subject to write-downs, it is understood that there is no loss.
According to the CS investment status submitted by the NPS to the office of Choi Hye-young of the Democratic Party of Korea on the 20th, as of the end of last year, CS bonds held through entrusted management (indirect investment) amounted to 135.9 billion KRW. It was found that the NPS has no direct investments in CS bonds. The risk of total loss of investment was avoided due to UBS's acquisition of CS.
An NPS official explained, "Most of the bonds are held as senior bonds, and although there is a small amount of subordinated bonds, these are also understood not to be subject to write-downs," adding, "We do not hold any AT1 bonds that are subject to write-downs."
As of the end of last year, the NPS also held CS stocks worth 73.2 billion KRW, but it is known that most were disposed of this year as concerns over the banking crisis increased.
The NPS stated, "While investment decisions on individual stocks under entrusted management are the exclusive authority of the entrusted asset managers, reflecting the seriousness of the matter, we are actively communicating with the asset managers holding these bonds and focusing on risk management."
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