UBS Taps Bond Insurer for Debt Backed by Private Credit Stakes

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000UBS Group AG is packaging its stakes in eight private credit funds into debt that’s backed by an insurance company, a financial maneuver that would allow the bank to cash out of the positions without having to unload them directly.The Swiss bank’s money-management arm, Unified Global Alternatives, plans to sell $500 million of the securities after taking the relatively unusual step of hiring an insurer to guarantee $375 million of them against default, securing an investment-grade rating of A2 from Moody’s Ratings on that portion of the deal, according to people with knowledge of the transaction.