Debt bankers are divided on whether UBS’s successful issue of the first Basel III-compliant Tier 2 bond will be a useful template for issuance of hybrid bank capital outside Switzerland.

The Swiss bank yesterday issued a $2bn Tier 2 contingent capital bond that incorporates two triggers, where its value will be written down should the bank's common equity Tier 1 ratio fall below 5% or if the Swiss regulator deems the bank to have become non-viable