UBS banking rules debate heads to Swiss parliament vote

Investors say UBS could save hundreds of millions annually if a parliamentary proposal allowing the use of Additional Tier 1 (AT1) bonds is approved, instead of the government's plan requiring Common Equity Tier 1 (CET1) capital. The proposal, which adds some new triggers, is seen as a victory for UBS, though it may face challenges in the lower chamber. AT1 bonds would cost UBS around 7%, cheaper than the 9-10% cost of CET1 capital, according to analysts.

UBS may save hundreds of millions annually if a proposal to use AT1 bonds is approved by Swiss lawmakers. The proposal, a compromise to Finance Minister Karin Keller-Sutter's CET1 plan, is under debate. UBS prefers the cheaper AT1 bonds, but regulators argue they are less secure than CET1 capital.

Bank of America (BAC) CEO Brian Moynihan warned of a 10%+ decline in Q3 investment banking fees to $1.6B–$1.8B, down from $2B in Q3 2025, and flat sales and trading revenue versus $5.4B last year. BAC shares fell 5.14% to $59.47, dragging the S&P 500 Banks Index down 2.7%. Jefferies data showed IB proxy revenue for eight major global banks down 15% YoY and 27% from Q2. Other banks like Goldman Sachs (GS), JPMorgan (JPM), and Morgan Stanley (MS) also saw declines, while Royal Bank of Canada repor

UBS Group AG (UBS) increased its debt tender offer capacity to $4B and set withdrawal terms. The company also downgraded its short-term bullish view on U.S. Treasuries, targeting 10-year yields at 4.80% and 2-year at 4.50%. UBS hired advisor teams from Morgan Stanley and Merrill Lynch, adding $2.6B in client assets. Additionally, UBS will consolidate its China wealth units and focus on branch deposits for growth.

High-grade debt issuance surged to $57 billion in the first two days of September, potentially leading to a fourth consecutive monthly record. September's supply could exceed $200 billion, surpassing last year's $189 billion. Key deals include GlaxoSmithKline's $6.5 billion offering and UBS's $6 billion print. AI debt spreads remain tight, but yields have risen. M&A-related debt issuance increased to 20% in August, the highest since May.

UBS repurchased $7.93 billion in legacy Credit Suisse senior notes via nine cash tender offers, settling on September 14. The bank also plans to repay an additional $1.8 billion, bringing the total repayment to nearly $10 billion. This is part of UBS's strategy to reduce inherited Credit Suisse debt, which has decreased from $90 billion to $29 billion since the 2023 acquisition.