UBS AG (UBS) has sold $1.5 billion of senior unsecured bank notes through its Stamford branch. The notes have a coupon rate of 2.25% and mature on August 12, 2013.
Ratings from Moody’s Investor Services − a unit of Moody’s Corp. (MCO) − and Standard & Poor's are “Aa3” and “A+”, respectively. The sole book running manager for the sale was UBS AG.
Last month, UBS AG posted its third consecutive quarter of net profit. Results were driven by solid contribution from its Investment Banking segment and a decline in client money outflows.
UBS AG reported a second quarter 2010 net profit of CHF 2.0 billion ($1.9 billion) compared with a profit of CHF 2.2 billion in the prior quarter and a loss of CHF 1.4 billion in the year-ago quarter. The company reported a decline in net new money outflows to CHF 4.7 billion from CHF 18.0 billion in the prior quarter.
UBS AG’s rival Credit Suisse Group (CS) reported a second quarter profit of CHF 1.6 billion, primarily due to tax and accounting gains.
The global financial crisis had a significant impact on UBS AG’s balance sheet. Moreover, issues related to the tax evasion investigation and the dilution of Swiss banking secrecy significantly impacted the company’s reputation. Worried investors looked for a safer refuge, leading to significant outflows.
Currently, UBS AG’s top priorities are increasing profitability, stanching outflows and strengthening its balance sheet. But any significant top-line expansion is likely to get restricted due to the volatile capital market conditions.
CREDIT SUISSE (CS): Free Stock Analysis Report
MOODYS CORP (MCO): Free Stock Analysis Report
UBS AG (UBS): Free Stock Analysis Report
Zacks Investment Research
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
