HSH Nordbank is seeking more than $275m (â¬186m) in damages from UBS after alleging the Swiss group profited by using weaker collateral to back a debt instrument it arranged and managed for its German rival partly to cover losses at its own, now defunct, Dillon Read Capital Management hedge fund.
HSH said at the weekend it was planning to start legal proceedings against UBS over losses incurred on a $500m collateralised debt obligation linked to the US mortgage market called North Street 2002/4 that the Swiss bank arranged for Landesbank Schleswig-Holstein, now part of HSH Nordbank, in March 2002 and has since managed.
