UBS Group AG is sounding out investors for a potential significant risk transfer tied to a portfolio of corporate loans, according to people familiar with the matter, as the Swiss bank explores ways to mitigate strict capital requirements being imposed by its main regulator.
The Zurich-based lender is considering an SRT tied to $1 billion of loans, said the people, who asked not to be identified as the details are private. The SRT may be equivalent to about 12.5% of the reference portfolio, they added.