Wealth Storage: Deposit vs Bond

[liroyb]

Client A holds account with UBS, the account balance is 1M CHF, which he locked in term deposit that yields him 3%.

Client B holds account with interactive brokers, his portfolio includes only UBS bonds with 3% coupon, which he bought for 1M CHF.

Would it be incorrect to say that, at least until the bonds mature or sold, both clients are holding their money with UBS?

 

[Sols]

Comes down to semantics.

Legally speaking, client B holds their money with IBKR and IBKR holds their money in UBS.

But functionally, Client A and Client B both have wealth vested in UBS.

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This is the probably the answer to your question.