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Laxman Pai, Opalesque Asia:

Beleaguered Swiss wealth manager Credit Suisse has agreed with US investment manager Apollo Global Management to sell a sizeable portion of its Securitized Products Group (SPG) - a key part of a sweeping revamp for the Swiss bank.

Credit Suisse said the transaction, along with the potential sale of other assets to third-party investors, is expected to reduce SPG assets from around $75 billion to $20 billion.

The bank said in a press release that the move represented an "important step towards a managed exit from the Securitized Products business, which is expected to significantly de-risk the investment bank and release capital to invest in Credit Suisse's core business."

The alternative money manager will "receive customary transitional services from Credit Suisse following the closing of the transaction to maintain a seamless experience for clients. Credit Suisse will also provide financing for a portion of the assets transferred to Apollo," the release said.

Completion of these transactions is expected to achieve a release of Risk Weighted Assets (RWAs) of up to approximately USD 10 billion, depending on the scope of assets ultimately transferred.

The approximately USD 20 billion of remaining assets, which will generate income to support the exit from the SPG business, will be managed by Apollo under an investment management relationship with an expected term of five years to be entered into at the first closing.

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