Launch VideoSwiss Life Sells Euro Bonds on Hedge Concern
Swiss Life Holding AG sold 7.8 billion Swiss francs ($8.1 billion) of euro-area government bonds and bought U.S., Canadian and U.K. bonds on concerns that the single currency might break up, making euro-Swiss franc exchange rate hedges “inefficient” according to a second-quarter presentation.
While the bulk of Swiss Life’s 95 billion Swiss franc insurance liabilities are denominated in the insurer’s domestic currency, the country’s 92.6 billion Swiss franc bond market is too small to meet Swiss Life’s need for long-dated low-risk assets, according to the company.
