Swiss Lawmakers Float AT1 Compromise in UBS Capital Debate

A group of center-right Swiss lawmakers has proposed a compromise solution in the debate over UBS Group AG’s capital levels, which centers on allowing the bank to use more convertible bonds to meet its higher future requirement.

Under the proposal offered by senior legislators including Liberal party member Thierry Burkart and Swiss People’s Party member Thomas Matter, UBS could meet the government’s demands for extra capital in part by using Additional Tier 1 bonds, according to a document seen by Bloomberg.

AT1s are a cheaper form of capital, and can be used for up to 50% of the ...