Similar to the unexpected and rapid increase in interest rates in early to mid-2022, long-term capital market interest rates responded much more swiftly than short-term SARON rates, which are heavily influenced by the SNB.
"The gap left by Credit Suisse is noticed in the market and is filling very slowly."
The 10-year CHF swap fell from over 2.00% in summer 2023 to below 0.80% at the beginning of August 2024. The SNB then lowered the SARON target rates with a delay in March 2024 and June 2024 to 1.25%.This development has undoubtedly greatly improved the cash flow situation for most property lien investors, especially compared to the challenging year of 2023.
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