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UBS’s Sales of Credit-Linked Structured Notes Decline 94%

UBS AG (UBSN)’s sales of credit-linked notes plunged 94 percent in 2013 after the Swiss bank sold more than twice as many securities as any other issuer last year.

Switzerland’s biggest lender has raised $26.1 million from issuing two credit-linked notes this year, down from $401.7 million and 57 notes during the same period in 2012, according to data compiled by Bloomberg. Stephanie Aneto, a spokeswoman for UBS in London, declined to comment.

UBS sold $25 million of 10-year securities tied to South Korean government debt on Jan. 7, as well as $1.1 million of five-year notes tied to Peugeot SA (UG) Jan. 30, Bloomberg data show.

The Zurich-based bank’s sales are the least since 2009. Barclays Plc (BARC) also sold the least securities in four years, while Deutsche Bank AG (DBK) issued the smallest amount since 2000. Germany’s biggest bank raised $71.5 million from the sale of 10 notes, 78 percent less than the $322.5 million of volume a year earlier, Bloomberg data show.

London-based Barclays issued $143.7 million of the securities, down 21 percent from $181.6 million a year earlier, Bloomberg data show.

Nick Bone, a spokesman for Deutsche Bank in London, and Jodie Gray, a London-based spokeswoman for Barclays, declined to comment.

UBS also arranged $105.2 million of credit-linked notes for Luxembourg-incorporated special purpose vehicle VIS Finance SA, according to data compiled by Bloomberg.

Germany’s DZ Bank AG and Landesbank Baden-Wuerttemberg together with UBS led sales of $43 billion of credit-linked notes in Europe and Asia in 2012, according to data compiled by Bloomberg. That compared with $40.4 billion the previous year, and was the most since $55.2 billion of issuance in 2008.

DZ Bank is the leading issuer of the securities in 2013, having sold $2.81 billion of the notes, more than twice its $1.12 billion total at this time last year.

To contact the reporter on this story: Alastair Marsh in London at amarsh25@bloomberg.net

To contact the editor responsible for this story: Paul Armstrong at parmstrong10@bloomberg.net

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