UBS during the second quarter still was working on reducing monoline insurance risks that can be traced partially back to U.S. residential real estate finance exposures, but it said in an earnings report that as of July it had agreed to commute certain trades with insurers, mitigating those bond insurance risks.

Monoline risk exposures, about one-third of which were linked to credit protection on subprime and other U.S. RMBS and CDOs, were among "identified risk concentrations" listed in the company's first-quarter financials.

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