UBS Sells Mortgage-Backed Securities to Cut Risk

Zurich–As part of UBS’ ongoing efforts to reduce risk, the Zurich-based banking giant said Wednesday that it had completed the same of its troubled mortgage-backed securities at a discount to a distressed asset-fund.The Swiss bank sold subprime and Alt-A assets with a nominal value of $22 billion to a special investment vehicle led by U.S. fund BlackRock for roughly $15 billion, The Wall Street Journal said. BlackRock is 49 percent owned by Merrill Lynch & Co.UBS has been in the process of reducing its investment banking operations to cut risk, which included 2,600 job cuts in its banking sector and management changes this year.