Asset Finance at Credit Suisse

Credit Suisse, prior to its acquisition by UBS, offered a range of asset finance solutions to clients globally. Asset finance, in general, allows companies to acquire the use of assets without a large upfront capital outlay. This could involve leasing, loans secured by assets, or other structured finance solutions tailored to specific client needs.

Within Credit Suisse, asset finance activities likely resided within different divisions, often within investment banking or wealth management, depending on the target clientele and the complexity of the transactions. They catered to diverse industries, potentially including transportation (aircraft, ships, rail), energy (oil rigs, pipelines, renewable energy projects), healthcare equipment, and technology hardware.

A key aspect of Credit Suisse’s asset finance approach would have involved structuring transactions to meet specific client objectives. This could involve optimizing tax benefits, matching cash flows to the asset’s useful life, or mitigating risks associated with asset ownership. The bank’s expertise in financial modeling, risk management, and legal documentation would have been crucial in these structuring activities.

Credit Suisse would likely have offered various types of asset finance products:

• Leasing: Allowing clients to use assets for a fixed period in exchange for regular payments. Different types of leases, such as operating leases or finance leases, would have been available, each with distinct accounting and tax implications.
• Asset-backed Loans: Providing financing secured by the value of the asset itself. This allows companies to access capital while retaining ownership of the asset.
• Project Finance: Funding large-scale infrastructure or industrial projects based on the projected cash flows of the project itself.
• Structured Finance: Creating complex financial instruments backed by a pool of assets.

The risk assessment process would have been critical to Credit Suisse’s asset finance operations. This involved evaluating the creditworthiness of the borrower, the value and liquidity of the underlying asset, and the potential risks associated with the industry and the specific transaction. Thorough due diligence and ongoing monitoring were essential to manage these risks effectively.

Furthermore, the bank’s global reach would have allowed it to support cross-border asset finance transactions, navigating complex regulatory environments and offering financing solutions in various currencies. Their understanding of international tax laws and accounting standards would have been invaluable to clients operating globally.

It is important to remember that Credit Suisse’s asset finance activities are now integrated into UBS following the acquisition. While the core principles of asset finance remain the same, the specific product offerings, risk management frameworks, and organizational structure may have been altered as part of the integration process.