by Calculated Risk on 10/29/2007 10:23:00 AM

From Bloomberg: UBS Says Subprime Contagion May Cause More Writedowns

UBS AG, Europe's largest bank by assets, said the slumping U.S. housing market may lead to further writedowns on debt securities following the company's first quarterly loss in almost five years.

UBS is at risk from ``further deterioration in the U.S. housing and mortgage markets as well as rating downgrades'' on mortgage-related securities, the Zurich-based bank said today in a statement.
...
UBS reduced the value of fixed-income securities and leveraged loans by about $4.1 billion in the period, and will release detailed third- quarter results tomorrow.

I wonder what will happen to the value of these assets next year when there will be record foreclosures and significant declines in U.S. house prices.