UBS AT1 Investors Get a Win After Swiss Put Reforms on Ice

As UBS Group AG blasted the Swiss government’s plans on tougher banking rules, holders of its riskiest bonds celebrated thanks to one sentence in the announcement.

The Swiss lender said it strongly disagreed with the government’s plans, which would add billions of dollars to its capital requirements. But a fleeting reference to AT1s in the statement Wednesday gave investors cause for cheer: “The Federal Council has decided not to proceed with the proposed adjustments to AT1 capital instruments for the time being.”