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UBS Diverts $5 Billion of Asia Deposits to Curb Basel III Costs 

September 4, 2015

Regina Tan, Bloomberg Business

UBS Group AG has shifted more than $5 billion of riskier Asia-Pacific deposits into alternative cash investments as new rules raise the cost of holding them.

The world’s largest manager of millionaires’ money has helped some clients such as hedge funds move their cash into assets held in structures including special purpose vehicles, according to Alessandro Caironi, head of capital market and banking product sales for Asia Pacific at the Swiss bank’s wealth management arm. In return, clients receive securities such as short-term structured notes.

“Clients investing cash in these alternative products done via SPVs get a higher coupon than they normally would,” Hong Kong-based Caironi said. “UBS benefits from being able to keep the accounts of these deposit holders, for relationship purposes and potential transactions in future.”

Read more: Bloomberg Business
 
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