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Tyler Durden

Tyler Durden

ZeroHedges' Tyler Durden is the hero of Fight Club, the 1999 movie based on Chuck Palahniuk's novel that reflected Chuck's experience in the Cacophony Society Quote: "Goddamn it, an entire generation pumping gas, waiting tables, slaves with white collars. Advertising has us chasing cars and clothes, working jobs we hate so we can buy shit we don’t need. We’re the middle children of history, man. No purpose or place. We have no Great War. No Great Depression. Our Great War’s a spiritual war… our Great Depression is our lives. We’ve all been raised on television to believe that one day we’d all be millionaires, and movie gods, and rock stars. But we won’t. And we’re slowly learning that fact. And we’re very, very pissed off."

Articles by Tyler Durden

Since 2014, European Banks Have Paid €23 Billion To The ECB… And Now Face Disaster

6 days ago

Earlier this morning, there was an added wobble in European bond prices after an unconfirmed MNI report said the ECB could delay the launch of QE on Thursday and make it data dependent. While skeptics quickly slammed the story, saying it was just a clickbait by MarketNews…

About this MNI story on a possible delay in ECB QE announcement:
1) No substance, including from the ECB “sources”
2) Let’s hope the story is as accurate as the previous ones
— Frederik Ducrozet (@fwred) September 10, 2019
… it does highlight just how sensitive the bond market is to an announcement of aggressive easing by the ECB when it meets on Thursday, Sept 12, where consensus generally expects a significant easing package, including a -20bp rate cut (followed by -10bp cut later on),

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Rothschilds To Take Swiss Bank Private In 100 Million Francs Bid 

March 16, 2019

Benjamin de Rothschild’s family plans to take Swiss Bank Edmond de Rothschild (Suisse) S.A. private as it consolidates and simplifies the bank’s legal structure.

According to Bloomberg,  Edmond de Rothschild Holding SA will acquire all publicly held Edmond de Rothschild (Suisse) bearer shares at 17,945 francs per share, a 6.7% premium to Tuesday’s closing price, in a deal worth about $100 million. The Swiss bank, which has long been linked with managing the wealth of countless uber-wealthy families, offers a variety of wealth management service for private and institutional clients, is expected to be delisted from the Zurich exchange. The stock, which traded on Wednesday around 17,500 francs, jumped by more than 8%

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Swiss National Bank Suffers $15 Billion Loss On 2018 Market Rout

January 10, 2019

SNB US Stock Holdings
In the third quarter of 2018, the hedge fund known as the Swiss National Bank did something it had not done in years: it sold stocks. As we showed in November, the overall value of the SNB’s US listed long holdings rose by over $2 billion to $90 billion, but all of this was due to the price appreciation as the central bank sold around $7bn of equities in Q3. This compares to purchases during 1H18 of around $6bn.

SNB US Stock Holdings, Jun 2014 – 2018(see more posts on SNB US Stock Holdings, ) – Click to enlarge

SNB Holdings
Alas, it did not sell enough, and as the next chart showed, some of the SNB’s top holdings would be the stocks that ended up getting hammered the most in the fourth

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The World’s Biggest Hedge Fund Is Getting Whacked, And Why “Moneyness” Matters

December 12, 2018

Authored by John Rubino via,
A few years ago the Swiss National Bank (SNB) – which traditionally held “monetary assets” like government bonds, cash and gold to back up the Swiss franc – decided to branch out into common stocks.
This was a departure, but for a while a brilliant one. The SNB loaded up on Big Tech like Apple, Amazon and Microsoft, and rode them to massive profits, which enriched both the Swiss people and the SNB’s stockholders (in another departure, it’s a publicly traded company as well as a central bank).
But live by the sword, die by the sword. Turning your central bank into the world’s biggest hedge fund means outsized profits in good times, but potentially serious losses if those

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Swiss National Bank Unexpectedly Sold US Stocks In Q3, Dumping Over 1 Million Apple Shares

November 12, 2018

The SNB’s latest 13-F form filings (yes, the Swiss central bank lists its US equity holdings like the hedge fund that it is) to the SEC were released this week. And, like every other quarter, we take a closer look to see what stocks the world’s only hedge fund central bank that prints money out of thin air bought, and on rare occasions, sold. This was one of those rare quarters.
After some modest fluctuations earlier this year, the SNB’s reported equity allocation was unchanged in 3Q at 21% (and includes no bank stocks to avoid conflicts of interest, yet somehow owning a chunk of equity of virtually every other US public company is not a conflict of interest?). This is notable because as JPMorgan writes, the SNB’s

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UBS Warns Trump’s Trade Fights Are ‘Reversing 15-Years Of Global Progress’ 

October 25, 2018

Protectionism has cross-party support in the U.S., and nationalist parties continue to gain traction in Europe. Where there is inequality, there is a surge in protectionism; a risk that could trigger the next global economic crisis sometime around 2020.
The Trump administration’s trade war and a hard Brexit could send tariffs to levels not seen in 15 years, according to UBS economist, as per Market Watch.
The Swiss bank views the U.S. tariffs, along with retaliatory measures (tit-for-tat with China), as the most significant factors boosting the metric. Second, are fears of a hard Brexit, which refers to the potential split between the U.K. and the European Union.
“Combined, these two would add 142 [basis points] to

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Swiss Bank Freezes $5 Billion In Russian Money

August 23, 2018

For years, Russian oligarchs and robber barons seeking to park their “unsourced” capital offshore and away from the sticky fingers of the Kremlin, treated Swiss bank accounts (preferably anonymous) with their “no questions asked” customer policies as, well, Swiss bank accounts.
No more.
One of Switzerland’s largest banks, Credit Suisse, has frozen roughly 5 billion Swiss francs ($5 billion) of money linked to Russia to avoid violating U.S. sanctions, according to its accounts, further increasing pressure on Moscow which today saw the ruble tumble to the lowest level in over two years.
The crackdown on Russian funds by the second largest Swiss bank, which owned aircraft surrendered by Russian tycoon Oleg Deripaska and

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The Swiss National Bank Now Owns $87.5 Billion In US Stocks After Q2 Tech Buying Spree

August 10, 2018

In the second quarter of 2018, one in which the global economy was shaken by the rapid escalation of Trump’s trade war, and in which central banks were one after another hinting at their own QE tapering and rate hiking intentions to follow in the Fed’s footsteps, what was really taking place was another central bank buying spree meant to boost confidence that things are now back to normal, using “money” that was freshly printed out of thin air, and spent to prop up risk assets around the world by recklessly buying stocks with no regard for price or cost.
Nowhere was this more obvious than in the latest, just released 13F from the massive hedge fund known as the “Swiss National Bank.” What it showed is that, just like

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In Unprecedented Intervention, Swiss Central Bank Bails Out Firm That Prints Swiss Banknotes

December 21, 2017

In the most ironic story of the day, the company that makes the paper that Swiss banknotes are printed on was just bailed out by the money-printing, stock-purchasing, plunge-protecting, savior-of-global equities…Swiss National Bank.

– Click to enlarge
While The SNB has a long and checkered history of buying shares in companies… as we have detailed numerous times, it is no stranger to pumping money into companies all over the world…

SNB – US Stock Holdings, Q3 2017(see more posts on SNB Holdings, ).
Including Apple, Alphabet, and Microsoft…
But, as Reuters reports, this is its first acquisition in decades.
The central bank said on Thursday it was purchasing a 90 percent stake in Landqart AG after the company –

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The Latte Index: Using The Impartial Bean To Value Currencies

December 9, 2017

Like any other market, there are many opinions on what a currency ought to be worth relative to others.
With certain currencies, that spectrum of opinions is fairly narrow. As an example, for the world’s most traded currency – the U.S. dollar – the majority of opinions currently fall in a range from the dollar being 2% to 11% overvalued, according to organizations such as the Council of Foreign Relations, the Bank of International Settlements, the OECD, and the IMF.
For other currencies, the spectrum is much wider. The Swiss franc, which some have called the world’s most perplexing currency, has estimates from those same groups ranging from about 13% undervalued to 21% overvalued.
As VisualCapitalist’s Jeff

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For The First Time Ever, The “1%” Own More Than Half The World’s Wealth: The Stunning Chart

November 21, 2017

Today Credit Suisse released its latest annual global wealth report, which traditionally lays out what has become the single biggest reason for the recent “anti-establishment” revulsion: an unprecedented concentration of wealth among a handful of people, as shown in Swiss bank’s infamous global wealth pyramid, an arrangement which as observed by the “shocking” political backlash of the past year, suggests that the lower ‘levels’ of the pyramid are increasingly unhappy about.
As Credit Suisse tantalizingly shows year after year (most recently one year ago), the number of people who control roughly half of the global net worth, or 45.9% of the roughly $280 trillion in household wealth, is declining progressively

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The Swiss National Bank Now Owns A Record $88 Billion In US Stocks

November 4, 2017

In the third quarter of 2017, one in which the global economy was supposedly undergoing an unprecedented “coordinated growth spurt”, and in which central banks were preparing to unveil their QE tapering intentions, in the case of the ECB, or raising rates outright, at the Fed, what was really taking place was another central bank buying spree meant to boost confidence that things are now back to normal, using “money” freshly printed out of thin air, and spent to prop up risk assets around the world by recklessly buying stocks with no regard for price or cost.
Nowhere was this more obvious than in the latest, just released 13F from the massive hedge fund known as the “Swiss National Bank.” What it showed is that, just

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Dollar & Stocks Jump; Bonds & Bullion Dump In Lowest Volatility September Ever

October 5, 2017

It has now been 318 trading days since the S&P 500 suffered a 5% drawdown – the 4th-longest streak since 1928… So everything is awesome…
[embedded content]
BUT…US ‘hard’ economic data has not been this weak (and seen the biggest drop) since Feb 2009…

US Data Surprise Index, 2006 – 2017 – Click to enlarge

Q3 Was a Roller-Coaster…
Q3 was the 8th straight quarterly gain in a row for The Dow – the longest streak since Q3 1997.
The Long bond was unch, gold up 3.2%,. but stocks outperformed in Q3…

Gold(see more posts on Gold, ) – Click to enlarge
Nasdaq just outperformed Small Caps on the quarter as stocks reversed their down-trend seemingly around Yellen’s J-Hole speech…

Yellen J-Hole Speech – Click to

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Is The Swiss National Bank A Fraud?

September 24, 2017

The price of shares in The Swiss National Bank is up 11 days in a row, soaring 150% in the last two months.

SNB Stock Price, 2010 – 2017(see more posts on Swiss National Bank Stock, ) – Click to enlarge
That sounds like a ‘tulip’ bubble-like ‘fraud’…

Bitcoin and SNB, 2013 – 2017(see more posts on Bitcoin, Swiss National Bank Stock, ) – Click to enlarge
The SNB is up over 120% in Q3 so far – more than double ‘bubble’ Bitcoin…

SNB and Bitcoin, Jul 2017 – Sep 2017(see more posts on Bitcoin, Swiss National Bank Stock, ) – Click to enlarge
Let’s check with the markets ultimate arbiter of what’s fraud and what’s real – JPMorgan CEO Jamie Dimon:
It’s a bubble (because it has exploded vertically in the last

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Fed’s Asset Bubbles Now At The Mercy Of The Rest Of The World’s Central Bankers

September 23, 2017

“Like watching paint dry,” is how The Fed describes the beginning of the end of its experiment with massively inflating its balance sheet to save the world. As former fund manager Richard Breslow notes, however, Yellen’s decision today means the risk-suppression boot is on the other foot (or feet) of The SNB, The ECB, and The BoJ; as he writes, “have no fear, The SNB knows what it’s doing.”
As we reported previously, In the second quarter of the year, one in which unlike in Q1 fund flows showed a persistent and perplexing outflow from US stocks, a trading desk rumor emerged that even as institutional traders dumped stocks and retail investors piled into ETFs, a “mystery” central bank was quietly bidding up risk

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Swiss National Bank Bubble Regains Lead Over Bitcoin

September 22, 2017

A week ago we tweeted…

Dear @SNB_BNS_en – you are the next bitcoin: congratulations
— zerohedge (@zerohedge) September 14, 2017

But as Bitcoin rebounded from its China challenges, it overtook The SNB once again as bubbliest bubble. However, a 13% spike in the share price of The Swiss National Bank today has put an end to that leaving the central bank back in first place among the melter-uppers…


Related posts: Digital-Currency Milestone: Somebody Just Bought A House With Bitcoin
Forget Tulips & Bitcoin – Here’s The Real Bubble
Weekly SNB Intervention Update: Sight Deposits and Speculative Position
Central Banks Buying Stocks

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Digital-Currency Milestone: Somebody Just Bought A House With Bitcoin

September 21, 2017

A day after Bridgewater Associates Founder Ray Dalio claimed that bitcoin was “definitely in a bubble” partly because he said the digital currency was too difficult to spend, CoinTelegraph is reporting that the first-ever bitcoin-only real-estate transaction has been completed in Texas.
The transaction “illustrates crypto’s potential to transform how financial transactions are conducted,” according to
The Texas-based real estate brokerage firm Kuper Sotheby’s International Realty, the firm that reperesented the buyer, declined to disclose the number of bitcoins that were exchanged for the home. noted the ease with which the transaction was conducted. “The buyer simply transferred the

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Forget Tulips & Bitcoin – Here’s The Real Bubble

September 12, 2017

While the broader market for Swiss stocks has risen modestly this year, one ‘entity’ has outperformed its peers by such a staggering margin, it has left bamboozled market experts struggling for an explanation.
And that company is…the Swiss National Bank.
The price of a share in Swiss National Bank in August rose above 3,000 francs ($3,143) for the first time, more than double the level of a year ago, and up 50% since mid-July, as the Financial Times noted in a story about its performance.
Shares of the SNB trade like any other company listed on the Swiss stock exchange, though because of their price liquidity is somewhat thinner. The Swiss cantons together own 45% of the SNB while 15% is owned by cantonal banks and

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The Secret History Of The Banking Crisis

August 14, 2017

Accounts of the financial crisis leave out the story of the secretive deals between banks that kept the show on the road. How long can the system be propped up for?
– Click to enlarge
It is a decade since the first tremors of what would become the Great Financial Crisis began to convulse global markets. Across the world from China and South Korea, to Ukraine, Greece, Brexit Britain and Trump’s America it has shaken our economy, our society and latterly our politics. Indeed, it has thrown into question who “we” are. It has triggered both a remarkable wave of nationalism and a deep questioning of social and economic inequalities. Politicians promise their voters that they will “take back control.” But the basic

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“Mystery” Central Bank Buyer Revealed: SNB Now Owns A Record $84 Billion In US Stocks

August 11, 2017

In the second quarter of the year, one in which unlike in Q1 fund flows showed a persistent and perplexing outflow from US stocks and into European and Emerging Markets, a trading desk rumor emerged that even as institutional traders dumped stocks and retail investors piled into ETFs, a “mystery” central bank was quietly bidding up risk assets by aggressively buying stocks. And no, it was not the BOJ: the Japanese Central Bank’s interventions in the stock market are familiar to all by now, and for the most part the BOJ keeps its interventions local, mostly propping up Japanese stocks, whether the Nikkei 225 or the Topix.

The answer was revealed this morning when the hedge fund known as the “Swiss National Bank”

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Risk Off: Global Stocks Slide As “Fire And Fury” Results In “Selling And Fear”

August 10, 2017

US futures are set for a sharply lower open (at least in recent market terms) following a steep decline in European stocks and a selloff in Asian shares, following yesterday’s sharp escalation in the war of words between the U.S. and North Korea. In a broad risk-off move U.S. Treasuries rose, the VIX surged above 12 overnight, while German bund futures climbed to the highest level in six weeks. The Swiss franc gained 1.2 percent to 1.1320 per euro its biggest daily advance since February 2015, while the yen surged as much as 0.8% against per euro, its strongest level in three weeks while gold rose.
“Trump’s comments about North Korea have created nervousness and the fear is if the President really means what he said:

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Swiss Banks Paid Out €1 Billion In Negative Interest Rates In The First Half

August 1, 2017

Overnight, the Swiss National Bank disclosed the composition and breakdown of its FX reserves as of June 30. There were no notable changes, as the central bank kept most of its asset allocations unchanged from the previous quarter, with equities, government bonds and “other bonds”, at 20%, 68% and 12% respectively. There were also no shifts in the currency composition as shown in the table below.
There was one notable – and unexpected – development, and it had to do with the SNB’s -0.75% deposit rate. As Reuters writes, Swiss banks paid 970 million Swiss francs ($1 billion) in negative interest rate charges in the first half of 2017, a 40% surge from the previous year, as clients continued to hoard even more cash

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When Do We Know These Are Delusional Markets

July 27, 2017

Latest Investment Outlook
In his latest investment outlook, Fasanara Capital’s Franceso Filia, who two months ago explained in one chart how the “fake market” operates…
… discuss what happens when a “Twin Bubble meets quantitative tightening” and answers why record-low volatility breeds market fragility and precedes system instability. We’ll have more to share on that shortly, but for now, here is Filia with his take on ‘when do we know these are delusional markets‘:

Signs of complacency and disconnect from fundamentals abound. So to sanity check, it may still be helpful to periodically remind ourselves of a few recent ones. In no particular order:
Argentina uses defaults as a recurrent macro-prudential policy,

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Bond Yields – “You Ain’t Seen Nothin’ Yet”

June 20, 2017

If You Only Look At One Chart…
Time is short, so here is one chart to get you thinking in a new direction.
Velocity of Money (M2)
M x V = P x T
The chart that no central banker wants you to see
Velocity and inflation will continue to fall as long as debt compounds faster than GDP growth.
The secular low in bond yields is still ahead of us.
*  *  *
Right Here, Right Now
The best trading ideas of the week from RVP Contributors
Buy some Insurance
Says Stray Reflections
In the past two decades the VIX has closed below 10 on only 11 occasions, and 7 of those occasions were during the past month. Sound normal?

“Low volatility begets high volatility. Some participants shared painful experiences that taught them

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Key Events In The Coming Busy Week: Fed, BOJ, BOE, SNB, US Inflation And Retail Sales

June 13, 2017

After a tumultous week in the world of politics, with non-stop Trump drama in the US, a disastrous for Theresa May general election in the UK, and pro-establishment results in France and Italy, this is shaping up as another busy week ahead with multiple CB meetings, a full data calendar and even another important Eurogroup meeting for Greece. Wednesday’s FOMC will be the main event, with the Fed expected to hike 25bp (see full Goldman preview here), while the BOJ, BOE and SNB all remain on hold.
Courtesy of BofA, here is the breakdown of key events:
FOMC the star in a G10 Central Bank week
After the eventful UK election, and less than eventful ECB meeting, the week ahead is a busy one, opening with the first round of

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A Problem Emerges: Central Banks Injected A Record $1 Trillion In 2017… It’s Not Enough

May 11, 2017

Two weeks ago Bank of America caused a stir when it calculated that central banks (mostly the ECB & BoJ) have bought $1 trillion of financial assets just in the first four months of 2017, which amounts to $3.6 trillion annualized, “the largest CB buying on record.” 

Aggregate Balance Sheet Of Large Central Banks, 2000 – 2017 – Click to enlarge
BofA’s Michael Hartnett noted that supersized central bank intervention which he dubbed a “liquidity supernova” is “the best explanation why global stocks & bonds both annualizing double-digit gains YTD despite Trump, Le Pen, China, macro…”

Central Bank Balance Sheet, 2006 – 2017 – Click to enlarge
To be sure, Hartnett’s “discovery” did not come as a surprise to

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“Mystery” Central Bank Buyer Revealed, Goes On Q1 Buying Spree

May 8, 2017

In the first few months of the year, a trading desk rumor emerged that even as institutional traders dumped stocks and retail investors piled into ETFs, a “mystery” central bank was quietly bidding up risk assets by aggressively buying stocks. And no, it was not the BOJ: while the Japanese Central Bank’s interventions in the stock market are familiar to all by now, and as we reported last night on sessions when the “the BoJ comes in big, the average return on the [Nikkei] is about 14 basis points higher” with Nomura calculating that “the BoJ has provided a cumulative boost to the Nikkei of about 1,400 points”…

Nikkei 225 vs. BoJ ETF Holdings 2011-2017 – Click to enlarge
… the one thing about the BOJ is that it

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Where There’s Smoke…

April 25, 2017

Central banks around the world have colluded, if not conspired, to elevate and prop up financial asset prices.  Here we’ll present the data and evidence that they’ve not only done so, but gone too far.
When we discuss elevated financial asset prices we really are talking about everything; we’re talking not just about the sky-high prices of stocks and bonds, but also of the trillions of dollars’ worth of derivatives that are linked to them, as well as real estate in dozens of countries and locations.  All are intricately linked together. For instance, stocks are elevated, in part, because bond yields are so low.  Sam for real estate.
Here are three questions most alert investors are asking:
Question #1: When will financial assets ever ‘correct’ and fall in price?
Question #2: How much does overt propping by the central banks have to do with today’s elevated prices?
Question #3: How much does covert propping by central banks play a role in these inflated markets?
These are important questions to consider because if central banks have been too involved and gotten themselves mixed up in trying to ‘wag the dog’ by using elevated financial asset prices as a means to drive economic expansion — then the risk is a big implosion in financial asset prices if their efforts fail.

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SNB Spent $68 Billion On Currency Manipulation In 2016

March 24, 2017

While Donald Trump has repeatedly expressed his displeasure with China for manipulating its currency, he appears to have recently figured out that over the past 2 years Beijing has been spending hundreds of billions in dollar to strengthen, not weaken, the Yuan and to halt the ~$1 trillion in capital flight from China. But while everyone knows that the biggest currency manipulation in the world, and perhaps the Milky Way galaxy is Japan, which now owns 40% of all JGBs in its ongoing attempt to pressure the Yen lower and explains why Abe was trembling when he met with Trump, terrified the US president would tell him to stop, one place where Trump may want to look is Europe’s famously “neutral” country, which however continues to be quite bellicose when it comes to currency warfare. Overnight, the SNB announced that in 2016 it spent 67.1 billion Swiss francs, or $67.6 billion, to purchase foreign currencies in an effort to weaken its currency.

The amount, published in the central bank’s annual report on Thursday, was roughly CHF20 billion lower than the 2015 total of 86.1 billion francs and a record of 188 billion spent in 2012. What is notable is that in 2015, the Swiss National Bank ended its 1.20 EURCHF peg, which ended up costing the SNB tens of billions in FX losses.

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Swiss National Bank’s U.S. Stock Holdings Hit A Record $63.4 Billion

February 10, 2017

Being able to print your own money and buy stocks at any price sure can be fun. Just as the SNB which unlike many other (if ever fewer) central banks admits to doing just that.
In its latest 13F filing, the Swiss National Bank reported that the value of its portfolio of US stocks rose again in the fourth quarter, increasing by 1.6% from $62.4 billion as of Sept. 30 to a record high $63.4 billion at the end of the year.
Over the past two years, the total Assets under management of this massive hedge fund, which occasionally engages in massive currency manipulation with disastrous results, have increased from $26.7 billion to $63.4 billion, a 138% increase, mostly as a result of relentless currency manipulation and monetization of various assets, including both bonds and stocks.

Value of Swiss National Bank US Stock Holdings, June 2014 – December 2016(see more posts on Swiss National Bank, ) – Click to enlarge
In its latest 13F, the SNB reported stakes in 2,564 companies, up from 2,536 in the previous quarter.
SNB policy makers, among them Governing Board Member Andrea Maechler, have said many times that they invest for the benefit of monetary policy, replicating broad-based indexes, and not to generate a profit, although with the S&P500 at all time highs, they have also achieved that.

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