Analysis-UBS market strength puts Swiss industry on edge

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Credit Suisse Nouvelles

Sergio Ermotti,Swiss Companies,FINMA

UBS's takeover of Credit Suisse has fed a creeping anxiety that Swiss companies will pay a price for the enlarged bank's outsize market strength. The...

ZURICH - UBS's takeover of Credit Suisse has fed a creeping anxiety that Swiss companies will pay a price for the enlarged bank's outsize market strength.

"Services and credit were subsidised or priced at an unacceptable level, well below where UBS prices, and well below every competitor prices. So, it's true that in a selective way, we're going to have to relook at repricing things," he said. "Some companies are seeing a negative effect on banking services. But many fear this is going to happen," said Jean-Philippe Kohl, deputy director of Swissmem, whose survey showed availability of credit was companies' biggest worry.

Some senior executives at Swiss-listed firms privately worry that issuing corporate bonds could get more expensive.The enlarged UBS had a 45% market share for underwriting Swiss franc-denominated bonds in 2023, according to figures from finance industry data provider Dealogic. But it worries smaller firms could feel pain, with UBS expected to adopt a more top-down, risk averse approach.

 

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