The Wall Street Journal-20080122-Credit Crunch- In Brief
Return to: The_Wall_Street_Journal-20080122
Credit Crunch: In Brief
Sigma Finance's
Ratings in Peril
Sigma Finance, a $46 billion finance company in London that is the largest of its type, is under threat of losing its top credit ratings, in the latest setback for structured investment vehicles, or SIVs. Fitch Ratings said it may lower the triple-A rating on Sigma's $31.6 billion of senior notes and could cut the F1+ rating on $2.3 billion in commercial paper. Sigma was launched by London-based investment manager Gordian Knot Ltd. in 1994. Gordian Knot officials couldn't be reached to comment.
Credit Suisse
Will Cut Some Jobs
Swiss bank Credit Suisse Group said it will cut about 150 staff at its U.K. investment-banking unit because of the difficult market conditions, but it vowed to boost business elsewhere. A Credit Suisse representative couldn't say how many people the division employs. "Over the next year, we also expect to continue to invest in areas targeted for revenue growth," including algorithmic trading, emerging markets, commodities and derivatives, the bank said. Credit Suisse employs about 47,000 world-wide.
RAB Growth Ebbs
On Lower Returns
London-based hedge-fund operator RAB Capital PLC reported a slowdown in 2007 earnings growth after lower returns at some of its funds led to a drop in performance-fee revenue. RAB shares have suffered from its holding in Northern Rock PLC -- though the fund manager noted the minor impact on its investment performance, as its 8% stake in the bank is less than 1% of RAB's assets. Along with other asset managers, RAB has been hit by worries over its ability to hold on to investor mandates in volatile markets.
