$UBS

UBS chairman Colm Kelleher stated the bank may reconsider its Swiss base if new regulations are too strict, following the 2023 Credit Suisse collapse. The Swiss government proposes stricter rules, including an additional $20B in capital requirements. UBS prefers a compromise with 50% CET1 and 50% AT1 capital, costing $13B, but faces opposition. The Swiss upper house delayed a vote on the proposals.

Swiss lawmakers consider letting the government decide on UBS's capital requirements, which the bank opposes. UBS argues the proposed rules would harm competitiveness. A vote is scheduled for Thursday, with mixed support among lawmakers. The decision could impact regulatory reforms following Credit Suisse's collapse in 2023.

Swiss lawmakers propose revisiting UBS's banking regulations before a parliamentary vote. The compromise reduces capital requirements from the government's initial proposal of $20B to $13B in Additional Tier 1 capital. UBS argues the original plan would disadvantage it against competitors. The vote follows Credit Suisse's 2023 collapse and its subsequent acquisition by UBS.

The Swiss stock market closed lower on Tuesday, with the SMI index falling 0.5% to 13,808.87, due to geopolitical concerns, rising bond yields, and higher oil prices. UBS Group and Julius Baer declined 3.4% and 2.3%, respectively, impacting the market's performance.

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.

European shares fell to three-month lows, led by banks and financial services. UBS, Deutsche Bank, UniCredit, and Standard Chartered saw significant declines. Rising oil prices and bond yields reduced risk appetite ahead of the U.S. Federal Reserve's rate decision. Bank of America's warning about lower investment banking fees also impacted sentiment. The STOXX 600 index dropped 0.8% to 630.99 points.

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.

Bank of America identifies stocks with growth potential, including Microsoft (MSFT), UBS (UBS), Expeditors International (EXPD), Timken (TKR), and First Horizon (FHN). Microsoft's AI strategy and Azure growth led to a price target increase to $600. Timken was upgraded to buy, with expectations of higher margins and earnings growth. First Horizon was praised for stability and leadership continuity. All stocks are up this year, with Timken leading at over 40%.

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.