(Bloomberg) -- Japan investors bought about 140 billion yen ($1 billion) of Credit Suisse Group AG’s bonds that were written off when the Swiss bank was suddenly sold last month, Finance Minister Shunichi Suzuki said.
It’s “regrettable” that the fallout from Credit Suisse’s woes affected investors in Japan, Suzuki said at a news briefing in Tokyo on Friday. Securities firms must make every effort to deal carefully with their customers, he added.
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.
In Japan, wealthy clients of Mitsubishi UFJ Financial Group Inc.’s securities venture with Morgan Stanley lost 95 billion yen on the notes, Bloomberg reported last week. 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.
Read how the AT1 market is reviving after Credit Suisse wipeout
The Financial Services Agency will follow up appropriately on how firms are treating their customers, Suzuki said.
--With assistance from Taiga Uranaka.
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