Julius Baer to review private debt business

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Julius Baer CEO Philipp Rickenbacher said Switzerland’s second-largest wealth manager will review its private debt business in the wake of the crisis at Austrian property group Cinca.

It is Julius Baer, ​​according to people familiar with the matter. One of the largest lenders to Signaa European luxury developer whose assets include a stake in KaDeWe, Germany’s most popular department store, and the Chrysler Building in New York.

Shares in Julius Baer It fell 16 percent last week after it said it was taking a SFr70mn ($80mn) provision on its credit portfolio. On Monday, the Swiss lender said this stemmed from a large exposure in its private debt loan book of SFr606mn.

Rickenbacher said: “We regret that the recent exposure has caused uncertainty for our stakeholders.” As a result, “we will review our private debt business and the framework in which it is conducted”.

Founded by Rene Benko Sinai It has amassed a €27bn property portfolio but has been hit hard by rising interest rates. Earlier this month, Sina said it had appointed a new chairman to restructure the group and that Benko would be stepping down from the company.

Siena owes banks and investors roughly 13 billion euros, according to an analysis by JPMorgan. However, the group’s complex structure and transparency made it difficult for lenders to assess the risk to capital.

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