The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.
CAPITAL MARKETS

Bond Outlook January 24th

The CHF has weakened further and must be worrying the SNB by now. In the meantime, the Fed is trying to remove excess liquidity, but failing miserably.

Bond Outlook [by bridport & cie, January 24th 2007]

The CHF at 1.62 to the EUR! This is getting serious! We have already suggested that the CHF is losing or has lost its safe haven status. Some believe it might regain it if the Middle East blows up or some other world catastrophe happens. The Swiss run themselves extremely well: no political shocks, hardly any strikes, moderation in all things, including inflation, but are these features enough to justify interest rates permanently and significantly below those of the neighbouring countries. There is no more a French Franc or Lira to flee from. Is it likely that the need will come to flee from the EUR? If the answer is “no”, then the interest rate differential CHF to EUR has to disappear, or the CHF will weaken to the point of embarrassment and, worse still, to a source of inflation. The world is already firmly in an environment of rising interest rates. Our conclusion from the weakness of the CHF is that Swiss rates, far from being an exception, have some catching up to do.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree