UBS Plans SRT Deal Out of Program Inherited From Credit Suisse

UBS Group AG is sounding out investors for a potential significant risk transfer, according to people familiar with the matter, as the banking giant explores ways to mitigate the impact of higher capital requirements proposed by the Swiss government.

Zurich-based UBS is considering an SRT tied to CHF2 billion ($2.5 billion) of loans, according to people familiar with the matter, who asked not to be identified as the details are private. The SRT may be equivalent to about 3% of the reference portfolio, they added.

Since the potential sale is in its early stages, the terms and size could change, ...