Business · Markets · 9 hrs ago
Swiss issuers provide most collateral in interbank repo market
The Swiss National Bank says a few Swiss issuers dominate interbank collateral used in repo deals, in which banks exchange securities for short-term cash.
Nearly 70% of the securities come from two Swiss mortgage bond institutions, the Swiss government and cantons, and SNB Bills.
The mortgage bond institutions account for about 45%, while government and cantonal bonds make up about 20% and SNB Bills about 4%.
About 90% of the securities used are denominated in Swiss francs, even though the SNB’s own accepted-collateral basket contains a much wider range of securities.
That basket included more than 3,000 bonds from around 200 issuers in over 20 countries as of the end of September.
The figures show that the SNB’s broad collateral basket has become a common standard for repo transactions between banks and with the central bank.
The SNB plans a new round-the-clock liquidity facility for November 2027 to help banks manage payments as instant payments spread.
The central bank also accepts digital bonds as collateral and says it reviews its policy as markets and technology change.
Swiss issuers provide most securities used as collateral in the Swiss interbank repo market, according to the Swiss National Bank.
Nearly 70% of the securities come from two Swiss mortgage bond institutions, the Swiss Confederation and cantons, and SNB Bills.
About 90% of the collateral used is denominated in Swiss francs, while around 70% has a AAA rating.
The SNB’s own collateral basket is much broader, with more than 3,000 bonds from about 200 issuers in over 20 countries.
The SNB plans to introduce a round-the-clock liquidity facility in November 2027.
- Who
- The Swiss National Bank’s director Petra Tschudin and deputy governing board member Thomas Moser presented the information.
- What
- Swiss issuers account for nearly 70% of securities used as collateral in the interbank repo market.
- When
- The information was presented on Thursday at a money market event in Geneva. The article was published on 29 October 2026.
- Where
- The Swiss interbank repo market; the remarks were made at a money market event in Geneva.
- Why
- Not stated
This story does not have two clearly opposing sides.
The SNB began accepting digital bonds as collateral.
An average of about 90% of Swiss interbank repo market volume was secured with securities from the SNB GC Basket.
The SNB collateral basket contained more than 3,000 bonds from about 200 issuers across over 20 countries.
Petra Tschudin and Thomas Moser presented the collateral-market figures at a money market event in Geneva.
The SNB plans to introduce a facility allowing banks to obtain liquidity around the clock within set limits.
- Largest collateral sources
- Nearly 70% from two Swiss mortgage bond institutions, the Swiss Confederation and cantons, and SNB Bills
- Mortgage bond institutions
- About 45% of securities used
- Swiss franc securities
- About 90% of collateral used in the interbank market
- AAA-rated securities
- About 70% of collateral used
- SNB collateral basket
- More than 3,000 bonds from about 200 issuers in over 20 countries and seven currencies
- Planned liquidity facility
- Introduction planned for November 2027