Hedge fund Appaloosa LP became the latest to sue over the $17 billion wipeout of high-risk bonds last year that was part of the deal to save Credit Suisse bank from a full-scale collapse. Hedge fund Appaloosa LP became the latest to sue over the $17 billion wipeout of high-risk bonds last year that was part of the deal to save Credit Suisse bank from a full-scale collapse. + Credit Suisse AT1 "rip-off" could cost Swiss taxpayer Appaloosa served as investment adviser to Palomino Master and Azteca Partners, who are also plaintiffs in the lawsuit, for their purchases of Credit Suisse debt known as Additional Tier 1 bonds, or AT1s. The funds suffered “significant investment losses” when UBS bought Credit Suisse and the bonds were written to zero just days after Palomino and Azteca had purchased them in March 2023, according to the complaint filed Tuesday in federal court in Newark, New Jersey. The investors claim Credit Suisse misled them about its well-being when they bought the notes.
