UBS Libor Cap Warrants

Keeping interest rate risks within limits

Do you expect mortgage interest rates to rise in the near future? Would you like to hedge your UBS Libor Mortgage against the risk that rates will change?

UBS Libor Cap Warrants allow you to ensure that the CHF Libor 3-month rate is set as your reference interest rate. You can thus protect yourself against rising interest rates on a variable-rate loan (such as a UBS Libor Mortgage).


UBS Libor Cap Warrants at a glance

Base interest rate	CHF Libor 3-month rate
Upper interest limit	You select the upper interest rate limit (strike) from the rates on offer at the time in question.
Term	The term of the warrant is limited. You select from the terms on offer at the time in question.
Current offer and prices	UBS Quotes
Nominal value	Depending on which UBS Libor Cap Warrant you opt for, one warrant corresponds to a nominal value of CHF 1,000 or CHF 10,000 (e.g. to finance a mortgage worth CHF 250,000, you buy 25 UBS Libor Cap Warrants at CHF 10,000 nominal value or 250 UBS Libor Cap Warrants at CHF 1,000 nominal value).
Advantages	You protect your variable-rate loan against rising interest rates You continue to benefit from low and falling interest rates UBS Libor Cap Warrants are always tradable