Breakingviews - Credit Suisse’s investment-bank drag will persist

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Profit warnings are becoming a tradition at Credit Suisse . The $17 billion Zurich-based group on Wednesday told investors that it expected to report a loss in the second quarter, citing weak results in investment banking businesses like debt trading and underwriting. Credit Suisse’s shares fell by 5%. Unfortunately for under-pressure Chief Executive Thomas Gottstein , the pain is far from over.

The Swiss bank’s historically strong investment banking businesses, such as credit trading and leveraged finance, are suffering from rising interest rates, while Chinese lockdowns have whacked Asian wealth management.

That means Gottstein has nothing steady to fall back on while he shrinks other businesses like prime broking. And it’s hard to see what could get better. Rising corporate bond yields will be bad for debt trading and underwriting, and the

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