UBS Gets Help From Swiss Government To Cover CS Takeover Related Losses
Portfolio Pulse from Lekha Gupta
UBS Group AG has signed a loss protection agreement with the Swiss government following its acquisition of Credit Suisse Group AG. The deal states that UBS will handle potential losses of the first CHF 5 billion, and the Swiss government will cover losses of the next CHF 9 billion. UBS will also pay the Swiss government a guarantee fee.
June 09, 2023 | 10:49 am
News sentiment analysis
Sort by:
Descending
NEUTRAL IMPACT
UBS's acquisition of Credit Suisse is supported by a loss protection agreement with the Swiss government, covering potential losses and guarantee fees.
The loss protection agreement provides a safety net for potential losses related to the Credit Suisse acquisition. While this may be seen as a positive development, it also highlights the risks associated with the acquisition. The impact on Credit Suisse's stock price is likely to be neutral in the short term, as the market has already priced in the acquisition and its associated risks.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100
NEUTRAL IMPACT
UBS signs a loss protection agreement with the Swiss government following its acquisition of Credit Suisse, covering potential losses and guarantee fees.
The agreement provides UBS with a safety net for potential losses related to the Credit Suisse acquisition. While this may be seen as a positive development, it also highlights the risks associated with the acquisition. The impact on UBS's stock price is likely to be neutral in the short term, as the market has already priced in the acquisition and its associated risks.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100