By Cecile Gutscher
Nov. 19 (Bloomberg) -- UBS AG, Europe's largest bank by assets, may have lost as much as $9 billion on collateralized debt obligations, according to CreditSights Inc.
The losses would be almost half the Zurich-based bank's $20 billion of top-rated CDOs, securities based on underlying assets. CreditSights, the independent research firm in New York, based its analysis on the bank marking down its holdings to prices indicated by benchmark indexes rather than methods used by UBS.
``While we do not expect it to make the additional $9 billion of writedowns estimated by our model, we do not see how it can avoid further substantial losses,'' CreditSights analysts led by Simon Adamson in London said in the report. ``UBS is by far the most vulnerable bank in absolute terms'' out of the nine European banks surveyed by CreditSights, the report said.
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