UBS buys back nearly $3 billion in bonds issued under a week ago


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UBS Group (UBSG.S) said on Wednesday it would buy back 2.75 billion euros ($2.96 billion) worth of debt it issued less than week ago, seeking to boost confidence among investors rattled by its $3 billion rescue of rival Credit Suisse at the weekend.

The bonds in question, senior unsecured bail-in notes that were issued on March 17, include the 1.5 billion-euro 4.625% fixed rate note due March 2028 and the 1.25 billion-euro 4.750% fixed rate notes due March 2032, UBS said in a statement.

Since its government-backed rescue of Credit Suisse, UBS has seen the value of its shares and bonds gyrate wildly. UBS stock fell by as much as 17% after markets opened on Monday, only to close 35% higher than those lows the following day.

The yield on its 7% additional tier dollar bond – a form of bail-in note – jumped to a record 29.8% at one point on Tuesday, from below 10% just a week ago, according to Refinitiv data. Those bonds were last yielding 18.7%.

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