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Bloomberg
Credit Suisse Group AG may cut as many as 500 positions in Switzerland as part of plans to restructure its retail business in the country.
Andre Helfenstein, chief executive officer of the Swiss Universal Bank and head of Switzerland, announced the cuts on a call with reporters after the bank had earlier signalled changes to its banking business.
The lender is targeting cost savings of about $109 million a year starting in 2022, after integrating the Neue Aargauer Bank AG unit under the Credit Suisse brand, according to a statement on Tuesday.
Meanwhile, Credit Suisse says investors can no longer rely on bonds to help mitigate equity risk because the relationship between assets has broken down, according to Credit Suisse Group AG. The 21-day correlation between the S&P 500 Index and 10-year Treasury yield turned negative on August 21, after having been at nearly 0.80 in mid-July.
“The breakdown in that correlation, alongside record low rate volatility, suggests bonds are no longer an effective diversifier of equity risk,†Mandy Xu, derivatives strategist, wrote in a note.