Bloomberg reports that the units “have gone through a number of significant changes that have substantially strengthened and more closely aligned their business models,” investment bank head Andrea Orcel said in a November 19th memo to employees. Chris Murphy and George Athanasopoulos will lead the new unit.
UBS scaled down its rates and credit businesses last year in a move to boost profitability at the investment bank. Credit Suisse earlier this month also said it’s setting up a new division to combine rates, foreign-exchange and commodities operations as it downsizes the rates business to boost returns.
'The integration is not a change in strategy, rather a natural evolution of what we are trying to achieve', the UBS memo said. Both the foreign exchange and precious metals and the rates and credit units deliver positive economic profit 'and combined they will continue to outperform against our strategic objectives'.
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