Author profile

Mario Eisenegger

Years in the bond markets: 2

Specialist subjects: Economics and corporate bonds

Likes: Handball, Oasis, FC Basel

Heroes: Roger Federer, Quentin Tarantino, Spider-Man

The US has not labelled Switzerland a currency manipulator, yet

Switzerland has made headlines of late as a potential candidate to be labelled a currency manipulator by the U.S. Treasury. For those countries at risk, a report recently published by the U.S Treasury sets out three key criteria the U.S. Treasury will use in order to assess whether a country is “pursuing unfair practices”. Firstly, the country would have a significant bilateral trade surplus wi…

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BV TV: And the Oscar goes to… political risk

We’ve talked before about how important political risk will be in 2017, as French markets have been the latest to discover. Tune in to this week’s edition, where Fund Manager Wolfgang Bauer joins me as we discuss:

  1. What’s the impact of political uncertainty on French OATs?
  2. Is political risk spilling over into the corporate arena: what’s behind the decoupling of European and US credit risk?
  3. Does…

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Swiss bank account holders: negative interest rates are here to stay

It was big news when Postfinance, the first Swiss bank categorised as “too-big-to-fail”, announced the introduction of negative interest rates to customers holding deposits of CHF 1 million and above. Many are now asking how long it will take until banks apply this approach to retail savers. I would argue that it may not be too long given the situation for Swiss banks remains challenging.

Part …

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The ECB, negative rates, and the Swiss experience

Ahead of tomorrow’s ECB monetary policy meeting, the market has high expectations of rates being cut further into negative territory (consensus is a cut in the deposit rate by 10 to 20 bps).  However, a report this week from the Bank for International Settlements (BIS) suggests that cutting rates further could be counterproductive and damaging for the banking sector.

The BIS’s quarterly review,…

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A look at the Swiss economy a year after the currency peg break

A year ago today the Swiss National Bank (SNB) unexpectedly discontinued its CHF peg against the euro, causing huge moves in the FX markets. On the anniversary of the peg removal I thought it would be interesting to see how the Swiss economy has developed over the past twelve months.

Swiss economy robust, but not immune during 2015

The Swiss economy actually proved to be quite resilient in 2015…

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The ECB may lower rates, but the Swiss shouldn’t follow suit

Expectations are high that European Central Bank (ECB) president Mario Draghi will announce additional easing measures at the next monetary policy meeting on Thursday this week. If the ECB decides to provide further stimulus via extended (or expanded) QE and/or lowers its negative deposit rate further, the Swiss National Bank (SNB) has some thinking to do. I am probably not the only Swiss perso…

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