Credit Suisse's Bond Write-Off Causes Major Losses for Investment Managers.

Pacific Investment Management Co (PIMCO) lost $340 million when a category of bonds were wiped out on Sunday in UBS’s takeover of Credit Suisse. Swiss regulators made the decision to wipe out $17 billion-worth of Additional Tier 1 (AT1) debt in order to allow the Credit Suisse and UBS merger to go through. Shareholders, who would usually be among the biggest losers, will at least see some return from UBS’s takeover price of 0.76 Swiss francs ($0.8191) per share—the equivalent of $3.23 billion.