SWX:UBSGCapital Markets
How Investors Are Reacting To UBS Group (SWX:UBSG) Challenging Tighter Capital Rules After New Bond Issues
Earlier this month, UBS Group AG completed two US$1.50 billion fixed-coupon, perpetual, callable subordinated Eurobond issues, while simultaneously intensifying its public opposition to proposed tighter Swiss banking capital rules following the Credit Suisse collapse.
By arguing that fully capitalizing foreign subsidiaries and raising capital buffers could add about US$1.70 billion in annual costs and threaten its business model, UBS has put the trade-off between financial stability and...