UBS Expands APAC Fixed Income Offerings After Credit Suisse Integration

Updated June 10,2025
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UBS is expanding its fixed​ income business in the Asia-Pacific ‌(APAC) region,capitalizing on⁢ its integration with Credit Suisse to offer​ a wider array of⁢ products ⁤to investors navigating an increasingly unpredictable economic landscape.The move aims to satisfy evolving investor strategies amid fluctuating interest rates and global economic uncertainty.

Gaurav Pugalia, head of ⁣macro ⁣structuring, APAC, ‍at UBS, ⁣noted the division among ​investors. Some fear rising interest rates and inflation, preferring shorter-term solutions. Others beleive​ the worst is​ over, anticipating ‍calming inflation and declining⁤ rates, and are‍ seeking to ⁣add duration to their portfolios.

The integration of Credit Suisse has enabled​ UBS to re-enter key parts of the market ⁣more quickly than anticipated, significantly expanding its product capabilities. A particular focus is‌ on​ longer-dated and​ more structured ​fixed⁤ income products in the⁤ APAC region.

According to Pugalia, ‌the expanded UBS ‌can now offer “more things to more clients,” providing ⁣competitive products ‍to investors moving to the longer⁤ end of the curve. The bank’s⁤ risk appetite remains unchanged post-integration.

UBS is offering new products like self-issued, long-dated ⁤zero-callable total⁣ loss-absorbing capacity (TAC) bonds. ⁣These combine the UBS name ‌with structured payoffs, appealing to‍ investors seeking long-term bank credit with ​access‌ to different payoff structures, Pugalia said.

Vallabh shastri, head of structured credit and ⁢financing structuring, APAC ⁢ex-Japan, at UBS, highlighted UBS Lux, a special-purpose vehicle offering structured payoffs and attractive rates for⁢ longer-dated products. Actively managed ‍certificates are also used ⁢to allow‍ clients to implement derivatives-based investment strategies without ⁣needing their own trading capabilities.

UBS is ⁢also seeing investors looking​ to raise cash against existing​ assets.Matteo Cappellini, head of structured financing, APAC, ⁤global markets,‍ at UBS, noted‌ that synthetic total return swaps can work well for⁣ government bond holdings, especially ⁢domestic‌ bonds held in ‌various Asian jurisdictions.

UBS has migrated ‍transactions from Credit Suisse and ​is further building this part of the business. Non-bank lenders can use these structures to ​lock ​in financing for several years on a possibly dynamic portfolio of⁣ assets, Cappellini said.

the‍ bank is also tailoring products to the‌ Islamic finance market in APAC,​ offering sharia-compliant ‌contracts. Having migrated trades⁢ and talent from Credit​ Suisse, UBS can now offer Islamic contracts to ​this growing⁣ market‍ in ‍Southeast Asia, Shastri said.

The Credit Suisse integration has significantly transformed UBS’s ‍presence in Japan, ⁤making it a‍ major focus with ⁣a ‌comprehensive fixed income strategy.Tsuyoshi Matsue, head of fixed income structuring, Japan, at UBS, said the bank ⁣is expanding ‌its⁢ fixed income business in response to changing ‍investor needs.

Hybrid products are a⁤ key growth area in ‍Japan, with UBS offering​ more flexible‍ product structures like​ constant ⁢maturity swap- and QIS-linked coupons. These⁤ diverse‌ products have already begun to broaden UBS’s client base in ‌Japan, according​ to Matsue.

“there is a lot of fear and uncertainty in ‌the ‍investor community now because the jury is still⁤ out on the ‍future for the global​ economy,” Pugalia said.

“Bringing the strengths of the ⁤two ‍firms together has accomplished in a matter of a​ year and a half what would have taken UBS ‌several years to accomplish on its own,” shastri said.

What’s next

UBS‌ aims to continue growing its fixed income ‍franchise ⁤through a broader range of⁢ products and market coverage, helping clients⁢ strike the right ⁢balance in rapidly changing market conditions. The ‌focus remains on serving​ a broader range of client needs with⁤ tailored solutions in the evolving economic environment.