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Bond Market News
UBS Gets Some Relief in Swiss Capital Fight
September 1, 2026
-Neel K
UBS Group secured a relief in its dispute with the Swiss authorities over a capital requirements proposal. A key committee in the Swiss parliament’s upper house has backed allowing UBS to use AT1s, for up to 50% of the additional capital requirement, provided the instruments are strengthened. This could materially reduce the cost and impact of the proposed capital increase. The debate traces back to Credit Suisse’s 2023 collapse, after which Switzerland has been seeking to “crisis-proof” UBS by requiring it to hold more capital against its foreign operations.
UBS argued that requiring ~$20bn in additional capital as per the authorities’ proposal would hurt its profitability and make it less competitive globally. Additionally, UBS would face restrictions on dividends, share buybacks, AT1 coupon payments and bonuses if its core capital fell below required levels. However, the proposal still needs approval from the full upper house and will then go through further stages of the legislative process. The next major vote is expected during the upper house’s autumn session.
UBS’s bonds traded stable with its 6.6% Perp at 100.93, yielding 6.33%
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