Credit Suisse Bonds Spark $30 Million Loss at Japan Game Maker

Japanese game developer Koei Tecmo Holdings Co. has written off 4.1 billion yen ($30 million) of Credit Suisse Group AG’s riskiest bonds after they became worthless following the bank’s near-collapse.

(Bloomberg) — Japanese game developer Koei Tecmo Holdings Co. has written off 4.1 billion yen ($30 million) of Credit Suisse Group AG’s riskiest bonds after they became worthless following the bank’s near-collapse.

Chairman Keiko Erikawa gave instructions to sell the bonds but the company was unable to offload them in time, resulting in a loss of the entire amount, she said at an earnings briefing on Monday. Koei Tecmo booked the loss in the year ended March. 

Investors around the globe are on the hook for losses on the 16 billion Swiss francs ($18 billion) in risky bonds, known as Additional Tier 1 notes, that were wiped out when the Swiss government brokered an emergency takeover of Credit Suisse by UBS Group AG last month. About 140 billion yen of the notes were sold in Japan, the government said last week. 

In Japan, wealthy clients of Mitsubishi UFJ Financial Group Inc.’s securities venture with Morgan Stanley lost 95 billion yen on the notes, Bloomberg has reported. Mizuho Financial Group Inc.’s clients lost more than 4 billion yen on the instruments, while Daiwa Securities Group Inc.’s customers lost less than 1 billion yen.

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