NEW UNEXPECTED RISKS FOR SWISS ASSETS 3/3

The Swiss franc’s renewed strength highlights a paradox where safe-haven demand outweighs negative interest rate differentials and domestic recession risks. Buoyed by exemplary fiscal discipline, with public debt at only 40% of GDP, Switzerland remains a global outlier compared to more heavily leveraged nations. Given the country's unparalleled political stability and the severe threat the Middle East conflict poses to global supply chains, a significant weakening of the currency appears unlikely in the near term.