Credit Suisse High Yield Bond Fund Files Form 8-K with SEC Following Merger with UBS Group

Strategic Insights -

On June 12, 2023, Credit Suisse High Yield Bond Fund filed a Form 8-K with the U.S. Securities and Exchange Commission, detailing the impact of the merger between Credit Suisse Group AG and UBS Group AG. As a result of the merger, Credit Suisse High Yield Bond Fund's investment manager, Credit Suisse Asset Management, is now an indirect wholly-owned subsidiary of UBS Group.

Key Takeaways:

  • The merger between Credit Suisse Group AG and UBS Group AG took place on June 12, 2023, with UBS Group remaining as the surviving company.
  • Credit Suisse High Yield Bond Fund's investment advisor, Credit Suisse Asset Management, is now an indirect wholly-owned subsidiary of UBS Group.
  • The fund's investment advisory agreement with Credit Suisse may be deemed to have terminated under applicable law, but an interim agreement was approved by the Board of Trustees to permit Credit Suisse to continue providing investment advisory services for up to 150 days.
  • Credit Suisse and certain of its affiliates filed an application for a waiver from disqualification under Section 9(a) of the Investment Company Act of 1940 due to a consent order and final judgment entered against certain of Credit Suisse's affiliates.
  • The SEC granted a temporary waiver from Section 9(a) to Credit Suisse and its affiliates, as well as to UBS Group and its affiliates, on June 7, 2023, which became effective on the Closing Date.
  • Credit Suisse and certain of its affiliates also applied for a time-limited exemption from Section 9(a) and a permanent exemption from Section 9(a) for UBS Group, which the SEC has not yet taken final action on.
  • The fund does not anticipate any immediate changes to its investment strategies or portfolio managers due to the merger or temporary waiver.
  • If the services are not transferred to UBS (or another third party) prior to termination of the temporary waiver, Credit Suisse will be disqualified from providing services to the fund.

Statistics:

  • June 12, 2023: Date of the merger between Credit Suisse Group AG and UBS Group AG.
  • June 13, 2023: Date of the Form 8-K filing with the U.S. Securities and Exchange Commission.
  • 150 days: The maximum period for which Credit Suisse can provide investment advisory services to the fund under the interim agreement.
  • 12 months: The time period by which it is currently anticipated that the services will be transferred to UBS or another third party.

Sources:

  • UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549
  • FORM 8-K CURRENT REPORT
  • Credit Suisse High Yield Bond Fund (Exact name of registrant as specified in its charter)
  • Delaware (State or other jurisdiction of incorporation)
  • Eleven Madison Avenue New York, New York 10010 (Address of principal executive offices)