Marathon, Redwood Scoop Up Credit Suisse Claims (Correct)

Hedge funds are snapping up claims on Credit Suisse Group AG’s AT1s, setting up what will be a contentious legal battle over the $17 billion in debt that was written down to zero.

Marathon Asset Management LP, Redwood Capital Management LLC and Sona Asset Management are among funds buying Credit Suisse’s AT1 bonds, which are now trading as claims, according to people familiar with the matter. They’re likely betting that the bonds will win a lucrative repayment, potentially through litigation.

Representatives for Marathon didn’t respond to a request for comment, while representatives for Redwood and Sona declined to ...