Bloomberg (Bloomberg) -- UBS Group AG is marketing subordinated bonds in the first sale of the riskiest bank debt in Europe since January. The Swiss bank will sell so-called additional Tier 1 notes, which are the first to take losses in a crisis, to yield about 7 percent, according to a person familiar with the matter, who isn’t authorized to speak publicly and asked not to be identified. Standard & Poor’s is expected to rate the dollar- denominated securities at BB, two levels below investment grade, the person said. The $102 billion market shuttered in mid-January as investors dumped holdings amid concern about bank earnings and the possibility that low capital levels would prompt regulators to prevent coupon payments. The notes got a boost last week after the European Central Bank announced a plan to pay banks to borrow, and the European Commission suggested giving “particular protection” to investors in the debt. UBS is one of the best-capitalized European banks and last sold AT1s in July. To contact the reporter on this story: Tom Beardsworth in London at tbeardsworth@bloomberg.net To contact the editors responsible for this story: Shelley Smith at ssmith118@bloomberg.net Neil Denslow bloomberg Bloomberg
UBS is marketing subordinated bonds for the first sale of the riskiest bank debt in Europe since January; it will sell so-called additional Tier 1 notes, which are the first to take losses in a crisis, to yield about 7%. The bond sales come as European banks have been struggling with their exposure to Greek debt.