UBS losses and exposure troubling - sizeable
By Neil Behrmann
May 2008:- Net outflows from UBS’s Global Asset Management unit amounted to16.5 billion Swiss francs ($15.6 bn) in the first quarter, following an outflow of 16.2 billion ($15.3 bn) in the fourth quarter of 2007. Of this amount withdrawals from institutional clients amounted to 9.6 billion Swiss francs ($9bn). Outflows were from equity strategies, some multi-asset mandates, fixed income, hedge funds and other alternative investments. Only money market funds experienced some inflows.
Proprietary trading results ghastly
Trading results in most fixed income, currencies and commodities (FICC) areas “were very weak” with losses of 19.1 billion Swiss francs ($18 bn) in the three months ended March compared with losses of 16 billion Swiss francs ($15bn) in the December quarter. This included proprietary trading losses in credit strategies, poor commodity trading revenues and a decline in equity proprietary trading revenues in all regions. Derivatives revenues also declined.
UBS also detailed the following losses and exposures:
UBS Horror Story
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