UBS shares storm back to pre-SVB levels with post-deal surge

The last-minute merger brokered by the Swiss government on Sunday has left investors racing to break down the implications for UBS, one of the world’s largest wealth managers.

UBS Group AG shares have erased almost all of the losses made during the past week’s banking rout, with a bond buyback announced Wednesday adding to confidence that the historic takeover of Credit Suisse Group AG will be a net positive for the firm.

The Swiss lender is leading gains among European banks this week, as fears around the stability of the finance sector eased after the €3bn emergency takeover. Shares gained as much as 3.6% to 20.12 cents on Wednesday, while the company’s bonds recovered some of the losses taken in recent days.