UBS Issues Oversubscribed AT1 Bonds, Restoring Confidence After Credit Suisse Wipeout
-
UBS is issuing its first AT1 bonds since Credit Suisse's writedown roiled the market in March. The bonds are already oversubscribed with $36B in orders.
-
The high demand marks a reversal from March when Credit Suisse's AT1 bonds were wiped out, causing yields to spike over 15%.
-
UBS's new bonds contain an equity conversion mechanism, responding to the Credit Suisse drama. The 5-year tranche launched at 9.25% yield.
-
The issuance bolsters UBS's capital layer without relying solely on equity. It follows strong Q3 results for UBS.
-
The deal aims to restore confidence in the AT1 market after the March wipeout caused a "Swiss penalty" with soaring yields.