UBS Returns to Contingent Capital Market Amid Legal Uncertainty

Swiss banking giant UBS has launched its first Additional Tier 1 (AT1) bond issuance since September 2025, testing investor appetite in a complex environment. The bank is bringing two dollar-denominated tranches to market with coupons exceeding 7%, a move that coincides with pending litigation over the wiped-out Credit Suisse AT1 bonds and awaits promised regulatory easing.

Key details of the new issuance:

• Two AT1 tranches denominated in US dollars
• Coupons set at 7.125% (callable 2031) and 7.5% (callable 2036)
• The first global bank AT1 transaction of 2026
• Placement proceeds amidst ongoing court cases

This capital raise occurs during a period of significant legal Read more...