For private banking clients, higher government bond yields create both investment and financing implications. Bonds can again serve as meaningful income producing assets rather than simply portfolio stabilisers. They can also form part of the collateral base used for Lombard facilities, although eligibility and advance rates vary considerably between banks and instruments.<\/p>

Currency remains central. A Swiss based client earning dollar income on Treasury holdings may gain attractive carry while simultaneously introducing USD exposure into the balance sheet. A private banker therefore considers yield, duration, currency and financing together rather than simply comparing headline interest rates.<\/p>

7. IMPLICATIONS FOR INTERNATIONAL CLIENTS<\/h4>

For international families holding substantial liquidity, the relevant question is increasingly where cash should sit, in which currency and at which bank. Differences between Swiss, UK, euro and US interest rates can now materially affect returns on otherwise conservative capital. Multi banking and international treasury management may therefore have as much strategic importance as security selection.<\/p>

8. THE PRIVATE OFFICE VIEW<\/h4>

The return of meaningful yields on high quality government debt is one of the most important changes in global wealth management. Capital no longer needs to travel far along the risk spectrum simply to earn income. For internationally diversified families and entrepreneurs, that makes disciplined comparison between cash, bonds, credit, currencies and borrowing costs significantly more valuable.<\/p>\t<\/div>\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t <\/div>\r\n <\/div>\r\n \t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"

Why 5% US Treasury Yields Are Drawing Swiss Capital Back Into Bonds 1. THE DEVELOPMENT One of Switzerland\u2019s major institutional investment managers has made a notable allocation change. Lombard Odier Investment Management has moved overweight US Treasuries for the first time in at least five years. Its multi asset strategies have shifted part of their […]<\/p>\n","protected":false},"author":1,"featured_media":10622,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[70],"tags":[96],"class_list":["post-10598","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-global-capital-investment","tag-us-treasury-yields"],"yoast_head":"\n