Bloomberg- UBS AG, which fell 3.8 percent in Swiss trading after Carlyle Group’s mortgage-bond fund moved a step closer to collapse, said it doesn’t give uncollateralized loans to hedge funds. <\/p>\n
“All our trading and lending activity with hedge funds is collateralized,” UBS spokeswoman Tatjana Domke in Zurich said today. Assets held as collateral are “well diversified and liquid.” <\/p>\n
All except three of the 60 members of the Bloomberg Europe Banks & Financial Services Index fell after Carlyle Capital Corp. said it failed to reach an agreement with lenders who demanded more than $400 million to meet margin calls. The fund said that it defaulted on about $16.6 billion of debt as of yesterday. <\/p>\n
Domke declined to comment on whether UBS has any exposure to Carlyle, saying the bank doesn’t comment on individual client relationships. <\/p>\n
UBS, Europe’s biggest bank by assets, dropped 1.22 francs to 30.72 francs, cutting the company’s market value to 63.7 billion francs ($63 billion). The Bloomberg Europe Banks & Financial Services Index lost 2.6 percent. <\/p>\n