Estimates for the next round of earnings results at UBS anticipate that it will see further mortgage-related writedowns, but that they will be mitigated by exposure reductions and hedging that will likely leave the company "at or slightly below break-even." UBS said that "in particular, credit valuation adjustments on monoline insurance exposures" are expected to lead to further writedowns and losses. But overall, UBS said its capitalization is sound. "At the end of the quarter, UBS expects its Tier 1 capital ratio to be approximately 11.5%, and has no need to raise new equity," the company said.
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