March 22 Reuters UBS Group said on Wednesday it would buy back 2.75 billion euros 2.96 billion worth of debt it issued less than week ago, seeking to boost confidence among investors rattled by its 3 billion rescue of rival Credit Suisse at the weekend.

The bonds in question, senior unsecured bailin notes that were issued on March 17, include the 1.5 billioneuro 4.625 fixed rate note due March 2028 and the 1.25 billioneuro 4.750 fixed rate notes due March 2032, UBS said in a statement.

Since its governmentbacked rescue of Credit Suisse, UBS has seen the value of its shares and bonds gyrate wildly. UBS stock fell by as much as 17 after markets opened on Monday, only to close 35 higher than those lows the following day.

The yield on its 7 additional tier dollar bond a form of bailin note jumped to a record 29.8 at one point on Tuesday, from below 10 just a week ago, according to Refinitiv data. Those bonds were last yielding 18.7.

Part of the rescue package for Credit Suisse involved the company writing down to zero the value of 16 billion in AT1 bonds, meaning those bondholders got nothing, while equity holders at least got the value of the share offer.

UBS shares were last flat on the day at 19.42 Swiss francs 21.05, having risen by as much as 3.6 in very early trading. 1 0.9285 euros

1 0.9224 Swiss francs

Reporting by Akriti Sharma in Bengaluru; Writing by Amanda Cooper; Editing by Mark Potter

Source Reuters