UBS embraces vertical integration

Key structural alterations have been made to UBS’s fixed-income business that involve the vertical integration of sales and trading in four product areas: investment-grade credit, MBS/ABS, European government/Libor derivatives, and US Libor flow derivatives.

“We are looking at our business and aiming to provide a better service and fill any gaps that exist. There are a number of areas where we want to grow our business,” says Simon Bunce, global head of fixed income.

Bunce, who ran investment banking in Japan until a year ago, says that these changes will help UBS be a better integrated fixed-income house. The vertical combination of sales and trading, managed in one team, is the most appropriate structure for flow, commoditized products.

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