UBS to write down $5.9bn auction rate securities book 

UBS plans to mark down more than 85% of its auction rate securities (ARS) paper, as the paralysis of the market continues into a third month.

The Zurich-based dealer, with a $5.9 billion ARS book of business, intends to inform customers via online statements that their holdings in what was regarded as liquid “cash equivalent” securities have lost value since the market ground to a halt in February.

Although holders of auction securities have been unable to move the paper on since the freeze-up, coupons have actually increased as penalty rates applied in the event of failed auctions have seen interest on the bonds climb as high as 20%

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here