UBS estimated that it would see a negative goodwill of about $34.8bn upon its acquisition of Credit Suisse. This would help it absorb potential losses estimated at $17bn and could also result in a boost to UBS’s Q2 profits. UBS expects to take a $13bn hit from fair value adjustments of the combined group and $4bn from potential litigation and regulatory costs. However, these are only preliminary numbers and could change. Following the transaction closure, UBS plans to manage two separate parent companies namely, UBS AG and Credit Suisse AG. Both companies will continue to have its own subsidiaries and branches, serve its clients and deal with counterparties, as per Reuters.
UBS’s dollar bonds were steady with its 4.875% Perp at 77, yielding 8.45% to call.
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