UBS Suspends Redemptions from $469M Euroinvest Fund Amid Liquidity Crisis

UBS, one of the world's largest financial institutions, has taken a significant step by suspending all redemptions from its $469 million Euroinvest fund.

The move, which affects investors who submitted redemption requests after March 25, is attributed to insufficient liquidity to cover withdrawal demands. This liquidity crisis is a result of the fund losing nearly 9% in value over the past 12 months due to collapsing European commercial property values.

This development mirrors the issues faced by crypto lenders Celsius and Genesis in 2022, where they accepted redeemable deposits while holding illiquid assets. The same liquidity mismatch that led to their collapse is now being experienced by UBS Euroinvest.