Wall Street Journal (05/07/08) P. C2; Shah, Neil; Gullapalli, Diya; Mollenkamp, Carrick
Following on the heels of Deutsche Bank AG and Citigroup Inc., UBS AG has become the latest investment bank to sell off unwanted assets, which some observers believe indicates signs of recovery in the credit markets. UBS is unloading $15 billion in Alt-A and subprime mortgages to asset manager BlackRock Inc., reportedly for about 68 cents on the dollar. While that price represents a significant loss for UBS, Citigroup credit strategist Matt King says banks are willing to meet buyers' prices in order to shrink their portfolios and holding costs. There remain concerns that rising mortgage defaults will make it difficult for these banks to continue getting rid of troubled assets.
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