While stocks rose in March, the market for complex instruments is still shut down, UBS said on Tuesday.

The Swiss bank, which today reported a first quarter loss of 1.975 billion Swiss Francs ($2.34 billion) today, said it remained “cautious on the immediate outlook for UBS” as the markets continue to be unsettled.

The company said its losses were primarily driven by positions its Investment Bank once held or is now attempting to rid itself of.

“There has been an improvement in market sentiment during the first quarter, with a strong rebound in global stock market indices since early March, but the credit markets improved only partly and trading in complex financial products remains illiquid,” UBS said.

With strong government influence on policy affecting the market, investors in the first quarter became more risk averse, the company said.

Meanwhile the real economy has continued to deteriorate, which will lead to negative credit-related provision in the upcoming quarters, UBS noted.