SNB & CHF

The iconic mountain, the Matterhorn, transformed Zermatt from an unknown alpine village to a world renowned tourist destination. The Matterhorn is one of the most famous mountains in the world, if not the most recognisable one, because of its unmistakable profile. Zermatt, the town at its feet, owes its fame to the Matterhorn. The mountain was first conquered 150 years ago. Since then, Zermatt has attracted tourists and climbers from all over the world. (SRF, swissinfo.ch) ---...

According to the latest news release, the Swiss National Bank expects an annual loss of 23 billion CHF, after reporting a loss of 50 billion at the end of June. Primarily thanks to the stronger dollar, the SNB was able to achieve unrealized gains of 27 billion CHF in the second half. This reduced her annual loss to 23 billion. With its rate hike, Fed is helping the SNB: the dollar has appreciated by 6% since July. Balance Sheet The SNB balance sheet looks as follows. In this post we...

Dear Prime Minister Alexis Tsipras, First, congratulations for mustering the popular support to say “no” to the troika. The euro has long offered Greece a perverse incentive to borrow, and now your country is trapped in debt. By any conventional means, Greece cannot repay (I propose an unconventional way, below). The sooner everyone acknowledges this simple fact the better. While I don’t claim to know why you agreed to a bailout deal this weekend, I can guess. The troika threatened to...

Originally Published on Jul 12, 2015 Plenty of people think there could be another financial calamity as early as fall of 2015. What is financial writer Charles Hugh Smith’s timeline? Smith predicts, “I see the motivation and the trend unfolding along those lines. They may be able to save it for another quarter, or maybe it will be the first quarter of 2016. We don’t know the exact timing, but they just keep winding the spring tighter and tighter. It is an attempt to control the exact...

Efforts are being made to bring bearded vultures back to central Switzerland, where the birds have not been seen since the 19th century. Members of the Bearded Vulture Foundation have taken three young birds up the Hengliboden mountain in Melchsee-Frutt, Obwalden, and will watch over and feed them until they can fly. (SRF/swissinfo.ch) --- swissinfo.ch is the international branch of the Swiss Broadcasting Corporation (SBC). Its role is to report on Switzerland and to provide a Swiss...

This summer, Swiss speed climber Ueli Steck is planning to scale all 82 European Alps over 4,000 metres in 80 days. The "Swiss Machine" and his climbing partner Michi Wohlleben aim to attack the more challenging routes on peaks in Switzerland, Italy and France.(SRF/swissinfo.ch) --- swissinfo.ch is the international branch of the Swiss Broadcasting Corporation (SBC). Its role is to report on Switzerland and to provide a Swiss perspective on international events. For more articles,...

One in five men in Switzerland is over 40 when he becomes a father, and this could be a risk factor for the baby. A study published in Nature magazine shows older fathers transmit a higher number of mutations to their children than older mothers. But they make up for it in their ability to nurture.(SRF/swissinfo.ch) --- swissinfo.ch is the international branch of the Swiss Broadcasting Corporation (SBC). Its role is to report on Switzerland and to provide a Swiss perspective on international...

For us the five major drivers of government bond yields are: Inflation expectations and inflation:  The by far most important criterion. High inflation expectations must be compensated via higher bond yields. The main driver behind inflation expectations is the wage development, this is the form of inflation that typically persists. Price inflation follows inflation expectations with a certain lag. Wealth: The higher the wealth of a country, the lower the bond yields. Wealth is typically...

For us the five major drivers of government bond yields are: Inflation expectations and inflation:  The by far most important criterion. High inflation expectations must be compensated via higher bond yields. The main driver behind inflation expectations is the wage development, this is the form of inflation that typically persists. Price inflation follows inflation expectations with a certain lag. Wealth: The higher the wealth of a country, the lower the bond yields. Wealth is typically...

We regularly publish the SNB asset structure by currency, rating & duration and the investment strategy. They shall be a template for the tactical asset allocation along these dimensions for other conservative asset managers – CHF holdings certainly excluded because the SNB nearly exclusively buys foreign assets. The SNB balance sheet looks as follows: In this post we will concentrate on the assets side, investment strategy and composition of “FX reserves”.See more on liabilities...