Credit Suisse, UBS deal: What you need to know

A pedestrian passes a UBS Group AG bank branch in Zurich, Switzerland. — Bloomberg

BANKING stocks and bonds plummeted on Monday as the hit to investors from UBS Group's state-backed takeover of Credit Suisse fanned concerns about the health of the global banking sector.

UBS agreed to buy rival bank Credit Suisse on Sunday for 3 billion Swiss francs ($3.23 billion) and assume up to $5.4 billion in losses, in a shotgun merger engineered by Swiss authorities.