SUBS (UBS) has completed a $15 billion dollar sale of mortgage-related securities to a distressed asset fund managed by Blackrock (BLK). The positions had a nominal value of $22 billion. So that’s only another $7 billion or so in mortgage-gambling losses. The Street:
The positions, primarily subprime and Alt-A, had a nominal value of $22 billion, UBS said in a statement. The Zurich, Switzerland-based bank signaled the sale earlier this month when it reported a first-quarter writedown of $19.5 billion tied to U.S. real estate and structured credit.
“Risk reduction remains a critical part of our ongoing financial restructuring and this sale is a big step towards further reducing our positions in this asset class,” UBS Group CEO Marcel Rohner said in a company statement. “We continue to manage our legacy risks in a flexible and creative way in the best interests of our shareholders.”
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