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UBS Group is said to be facing regulatory headwinds, as Swiss authorities have proposed stringent capital requirements in the aftermath of its 2023 acquisition of Credit Suisse. The Swiss government is expected to unveil proposals in June that would require UBS to increase its ability to cover losses in foreign subsidiaries to 100% of the capital held, as per Bloomberg. They expect this measure to increase UBS’ capital demand might by as much as $25bn. UBS’ Chairman Colm Kelleher said that implementing the reforms would “result in a CET1 ratio that would be 50% higher” than that of thier international competitors.
UBS’ dollar bonds were trading steady, with its 3.875% Perp at 96.8, yielding 7.2%. Its shares fell by 3.3% on Tuesday.
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