UBS (UBS) has been on an investor roadshow and suggested changes to terms of future additional tier 1 securities, Owen Walker and Harriet Clarfelt of The Financial Times said, people familiar with the matter said. UBS is under pressure to replace up to $17B of Credit Suisse (CS) AT1 bonds in the coming years, which will improve efficiency of the bank’s capital structure and free up funds for shareholder returns and acquisitions. However, some shareholders remain wary of this after bondholders lost billions after Credit Suisse was rescued and an emergency law by the Swiss government allowed the country’s financial regulator to protect shareholders at the expense of AT1 holders.
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