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The Chief of the Central Bank in Switzerland gives a vote of trust in US government bonds even after the largest economy in the worldwardat the last top rating of Moody’s credit.
“US treasuries are more fluid,” The Swiss National Bank President Martin Schlegel said Monday in Lucerne. “There is no alternative to them and it doesn’t know that there is a choice.”
The SHRB has lost over 700 billion Swiss Francs ($ 838 billion) worth of foreign currency, with nearly two thirds made of government bonds. Schlegel says that holds include US wealth treasuries, but do not determine what amount.
Asked how the US wasEradicationIn Moody’s Friday affect SNB investment decisions on its reserves, Schlegel emphasized that “we look at the ratings – but not the effects ofasset allocation. “
This story originally shown Fortune.com
