UBS Ship Sinks in Asset Fire Sale
A leader in our Dead Pool's foreign legion of dishonor...
UBS marked down about $19 billion last year, posting the first annual loss since the Zurich-based bank was created in 1998.
UBS sinking in fire sale... Europe's biggest bank by assets fell 4.2% as JPMorgan Chase analysts said
it probably sold $24 billion of Alt-A MBS mortgage-backed securities in a "fire sale"' and may have more writedowns.
UBS held $21.2 billion in AAA rated Alt-A securities at the end of last year, which were marked down on average to 96 cents on the dollar,
and an additional $5.4 billion in other Alt-A assets, whose value was taken down on average to 61 cents on the dollar.
Prices of about 70 cents on the dollar for the Alt-A assets in the fire sale are realistic.
Merrill analysts increased their estimate of UBS writedowns from $13 to $22 billion.
Even with no dividend payment, UBS may have to raise capital again (sell stock to meet reserve requirements) if writedowns exceed $16 billion.
UBS already sold $12 billion in bonds that will convert into shares to investors in Singapore and the Middle East,
and said it will resell treasury shares to replenish capital.
The Nattering One muses... like a smart sheikh who did not buy in to the ponzi scheme...
I feel sorry for the existing shareholders and can't imagine anyone else wanting to sink with them.
Hattip to Bloomberg.
UBS marked down about $19 billion last year, posting the first annual loss since the Zurich-based bank was created in 1998.
UBS sinking in fire sale... Europe's biggest bank by assets fell 4.2% as JPMorgan Chase analysts said
it probably sold $24 billion of Alt-A MBS mortgage-backed securities in a "fire sale"' and may have more writedowns.
UBS held $21.2 billion in AAA rated Alt-A securities at the end of last year, which were marked down on average to 96 cents on the dollar,
and an additional $5.4 billion in other Alt-A assets, whose value was taken down on average to 61 cents on the dollar.
Prices of about 70 cents on the dollar for the Alt-A assets in the fire sale are realistic.
Merrill analysts increased their estimate of UBS writedowns from $13 to $22 billion.
Even with no dividend payment, UBS may have to raise capital again (sell stock to meet reserve requirements) if writedowns exceed $16 billion.
UBS already sold $12 billion in bonds that will convert into shares to investors in Singapore and the Middle East,
and said it will resell treasury shares to replenish capital.
The Nattering One muses... like a smart sheikh who did not buy in to the ponzi scheme...
I feel sorry for the existing shareholders and can't imagine anyone else wanting to sink with them.
Hattip to Bloomberg.
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