The first half of 2022 showed that even safe CHF bonds are not immune from painful losses. After many years of excellent performance, the portfolio with all Swiss bonds, for example, did about as poorly as Swiss equities.
Concluding seven years of negative interest rates, the Swiss National Bank (SNB) tightened monetary policy at its September meeting, warned that further rate increase could be necessary and joined other global central banks in foreseeing significant risks to the global economy. Lifting base rates by 75bps to 0.50%, the bank also raised its inflation forecasts and unveiled measures to manage excess liquidity.