(Bloomberg) -- Volatility on Swiss franc options has
fallen to the lowest in at least 11 years, increasing investors'
appetite for borrowing in the currency to finance purchases of
higher-yielding assets.
Narrower swings in the franc encourage investors to boost
so-called carry trades. This strategy involves borrowing in
countries such as Switzerland, where the benchmark interest rate
is 2.25 percent, to invest in economies including the U.S.,
where the key rate is 5.25 percent.
Read more at Bloomberg Currencies News
fallen to the lowest in at least 11 years, increasing investors'
appetite for borrowing in the currency to finance purchases of
higher-yielding assets.
Narrower swings in the franc encourage investors to boost
so-called carry trades. This strategy involves borrowing in
countries such as Switzerland, where the benchmark interest rate
is 2.25 percent, to invest in economies including the U.S.,
where the key rate is 5.25 percent.
Read more at Bloomberg Currencies News
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