Swiss investment bank UBS raised $1.5bn via a perpetual non-call 10Y (PerpNC10) bond on Monday at a yield of 4.375%. While order book details were not available at the time of writing, investor demand seemed strong based on the 62.5bp tightening. UBS started marketing the AT1s during Asia hours at 5% area, before revising the guidance to 4.75% at about 9pm Singapore, before US open. The AT1s, expected to be rated BB/BBB, are callable on February 10, 2031 and every coupon payment date thereafter. UBS’ new AT1’s coupon resets, if not called in 2031, to the prevailing 5Y Treasury yield plus a spread of 331.3bp. The AT1s also carry a dividend stopper. The notes will be written down upon the occurrence of a Trigger Event, if the bank’s CET1 ratio falls below 7%, or a Viability Event, determined by Swiss regulator FINMA.