Gold, Bonds, Negative Rates Drive SNB Profit
George Dorgan | Apr 29, 2016 03:49AM ET
The Swiss National Bank has achieved a profit of 5.7 billion CHF in Q1/2016. The total yield on assets per annum was 3.4%.
The main contribution comes from gold with price change of 10% in this quarter. If this performance continued, it would give a 48% yield for this year.
The total yield on debt was positive with +0.2% thanks to negative interest rates.
The deflationary environment let to rising bond prices. Bonds, make up 74% of the SNB portfolio.
Here the details of our calculation:
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