Swiss bond market contracts despite negative rates – SNB’s Maechler
Shift driven by lower issuance by Swiss government and reduced financing needs of banks
Despite the negative interest rates introduced by the Swiss National Bank in 2015, the Swiss franc bond market has contracted, Andréa Maechler, member of the governing board at the SNB, said on November 16.
“One would have expected issuers to have exploited this situation [negative deposit rates] to take on more debt – and that this, in turn, would have resulted in higher issuance and a greater volume of outstanding bonds,” Maechler said at the annual Money Market Event in Geneva. “Numerous
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