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GoldenTree makes $100m from AT1 bet

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The turmoil in the weeks following the emergency rescue of Credit Suisse by rival UBS Group proved to be a profitable time for GoldenTree Asset Management, with the hedge fund making a profit of around $100 million from a bet on Additional Tier 1 (AT1) bank bonds, according to a report by Bloomberg.

The report cites unnamed sources with knowledge of the matter as revealing that the hedge fund, a specialist in credit trading, bought roughly $300 million of AT1 bonds issued by various banks at discount prices after $17 billion of Credit Suisse bonds were wiped as part of its rescue deal. 

GoldenTree reportedly paid between 60 and 80 cents for the AT1s and pocketed a profit in the following weeks when the bonds rebounded in value.

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