UBS declined to comment on the report.
The head of the business, Ken Cohen, was hired just six months ago to head the bank's real-estate finance and commercial mortgage-backed securities business in the United States after stints with Lehman Brothers and G2 Investment Group.
His mandate was later extended to include other asset-backed securities.
Writedowns on the bank's huge exposure to mortgage- and asset-backed securities pushed UBS to the biggest corporate loss in Swiss history in 2008 and forced it to accept a state bailout.
The HandelsZeitung report comes just a few days ahead of a key investor day in New York, at which UBS is expected to reveal a major overhaul of its beleaguered investment bank.
UBS was hit by a $2 billion trading scandal in September just as it was starting to recover from massive losses on subprime assets in the financial crisis.
(Reporting by Katie Reid and Martin de Sa'Pinto; Editing by David Holmes)