Friday, 27 March 2015
Last updated 2 hours ago
Aug 13 2007 | 8:44am ET
The proliferation of sub-prime and stock market woes in recent days may have dimmed memories of May’s miseries, but some are set to be thrown into sharp relief tomorrow when UBS announces it second-quarter results.
Dresdner Kleinwort analysts predict that legacy positions from the Swiss bank’s recently-shuttered hedge fund unit, Dillon Read Capital Management, could cut its fixed-income revenue by a quarter, on top of the US$150 million in losses that led to the fund’s closure.
According to Dresdner, UBS was left holding some 20 billion Swiss francs (US$16.7 billion) worth of illiquid Dillon Read positions.
“Assuming leverage of at least five times (conservative in light of previous returns, we believe), UBS held at least 20 billion Swiss francs of related assets,” the report said. “This may have been partly hedged or sold since but we believe the majority of the positions exist, owing to unfavorable market liquidity.”
Further losses in Dillon Read positions are not the only problem for UBS: It will cost the bank about 300 million Swiss francs (US$250.4 million) in restructuring costs related to closing the hedge fund.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…