Credit and liquidity premiums in the Swiss capital market

The Swiss capital market is characterised by its complexity and stability and represents a central pillar of the national financing landscape. However, the publicly accessible bond market, which comprised new issues worth around CHF 81.9 billion in 2023, only accounts for around 8% of the total annual financing volume in Switzerland. In fact, more than 90% of financing is provided via the (bilateral) private market.

Particularly in times of economic and regulatory upheaval, the private market is proving to be flexible and full of opportunities for both issuers and investors.

But what are the differences between the public and private debt capital markets? How do credit and liquidity premiums affect risk assessment and potential returns? And what role do innovative financing instruments such as private placements play in this context?

These questions are at the centre of the guest article by Stefan Pomberger, Vontobel cosmofunding in the IFZ Financing and Treasury Study 2024

Using data and analyses from the period 2019 to 2024, it will show how issuers and investors can benefit from the unique characteristics of the private market - be it through diversification, access to more attractive financing conditions or the generation of alpha. It also highlights the potential of digitalisation and new technologies to further simplify and optimise access to the market.

Immerse yourself in a detailed look at credit and liquidity premiums and learn more about the comprehensive analyses and practical insights.