UBS Triggers Margin Calls After Russia Bond Values Plummet

Posted on March 3rd, 2022 at 3:24 PM
UBS Triggers Margin Calls After Russia Bond Values Plummet

From the Desk of Jim Eccleston at Eccleston Law:

UBS Group has triggered margin calls on some of its wealth management clients who use Russian bonds as collateral for their investments after the value of debt issued by the country and its businesses plummeted.


The firm is requiring some wealth management clients to deposit cash or securities in their accounts after UBS slashed the lending value of some Russian bonds to zero, according to people familiar with the matter. The firm may choose to liquidate the securities at market value for clients who cannot meet the margin call while UBS has demonstrated that it will no longer accept Russian bonds as collateral. UBS, which claims to serve half of the world’s billionaires, had $447 million of banking products including loans and guarantees to Russia in 2020.


The bank’s Swiss rival, Pictet, is also reducing the value of Russian debt in investors portfolios, according to those familiar with the matter. UBS most recently dealt with a spike in margin calls when volatility spiked at the outset of the pandemic in the spring of 2020.


Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

 
 

Tags: eccleston, eccleston law, russia, ubs

Return to Archive

TESTIMONIALS

Previous
Next

I cannot thank you enough for your guidance. It's a good feeling knowing someone is fighting for you.

Matt J.

LATEST NEWS AND ARTICLES

December 22, 2025
FINRA Overhauls Arbitration Rules to Rebalance Arbitrator Selection and Codify Forum Practices

The Financial Industry Regulatory Authority (FINRA) has approved significant amendments to its Codes of Arbitration Procedure designed to rebalance public arbitrator selection, increase transparency, and formalize several long-standing practices in the arbitration forum.

December 19, 2025
Industry Groups Press Senate at Advance Financial Exploitation Prevention Act

Several industry associations are urging the U.S. Senate to pass the Financial Exploitation Prevention Act, legislation that would allow mutual fund companies and their transfer agents to delay redemptions when they reasonably suspect elder financial abuse.

December 18, 2025
UBS Warns of Rising Default Risk in Private Credit

A UBS report signals that credit stress likely will intensify next year as borrowers confront inflation, elevated interest costs, and softening consumer conditions.