UBS to Shut Unit in MBS-Linked Move

UBS has made plans to shut down its Stamford, Conn.-based Dillon Read Capital Management unit after noting that the division saw "negative trading revenues" of "approximately 150 million Swiss francs [about $123 million] in the context of difficult market conditions in U.S. mortgage securities."The Switzerland-based UBS plans to shut down DRCM's operations after a transition period that is expected to end in the third quarter of this year. "DRCM's principal finance, credit arbitrage, and commercial real estate businesses will be merged with relevant business lines within the Investment Bank," UBS said. "DRCM's third-party funds will be redeemed. UBS intends to work with DRCM investors to identify alternative investment opportunities for them."