UBS (NYSE:UBS) announced that it would buy back $2.96B worth of debt it issued, less than a week ago, in order to boost confidence among investors shaken by the ongoing financial turmoil and the $3B rescue of Credit Suisse last week.
Reuters reports that the bonds are senior unsecured bail-in notes that were issued on Mar.17 and include €1.5B 4.625% fixed rate note due March 2028 and the €1.25B 4.750% fixed rate notes due March 2032.
Since its government-backed rescue of Credit Suisse, UBS has seen the value of its shares and bonds have risen rapidly.
Refinitiv data indicates that the yield on its 7% additional tier dollar bond, a form of bail-in note, surged to a record 29.8% at one point on Tuesday, from below 10% just a week ago; those bonds were last yielding 18.7%.
The Credit Suisse rescue package involved the company writing down to zero the value of $16B in AT1 bonds.