Next Article in Journal
A Probit Model for the State of the Greek GDP Growth
Next Article in Special Issue
TARGET2 Imbalances and the ECB as Lender of Last Resort
Previous Article in Journal / Special Issue
Determinants of the Government Bond Yield in Spain: A Loanable Funds Model
Article Menu

Export Article

Open AccessArticle
Int. J. Financial Stud. 2015, 3(3), 351-380; doi:10.3390/ijfs3030351

The Swiss Black Swan Bad Scenario: Is Switzerland Another Casualty of the Eurozone Crisis?

1
Finance Department, NEOMA Business School, Reims, 51100, France
2
Sauder School of Business, University of British Columbia, Vancouver, V6T 1Z2 BC, Canada
3
Systemic Risk Centre, London School of Economics, London, WC2A 2AE, UK
*
Author to whom correspondence should be addressed.
Academic Editors: Marida Bertocchi and Rita L. D’Ecclesia
Received: 28 May 2015 / Accepted: 16 July 2015 / Published: 12 August 2015
View Full-Text   |   Download PDF [1444 KB, uploaded 12 August 2015]   |  

Abstract

Financial disasters to hedge funds, bank trading departments and individual speculative traders and investors seem to always occur because of non-diversification in all possible scenarios, being overbet and being hit by a bad scenario. Black swans are the worst type of bad scenario: unexpected and extreme. The Swiss National Bank decision on 15 January 2015 to abandon the 1.20 peg against the Euro was a tremendous blow for many Swiss exporters, but also Swiss and international investors, hedge funds, global macro funds, banks, as well as the Swiss central bank. In this paper, we discuss the causes for this action, the money losers and the few winners, what it means for Switzerland, Europe and the rest of the world, what kinds of trades were lost and how they have been prevented. View Full-Text
Keywords: Swiss franc; Euro peg; black swans; currency trading losses; Swiss exports; quantitative easing; negative interest rates Swiss franc; Euro peg; black swans; currency trading losses; Swiss exports; quantitative easing; negative interest rates
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

Scifeed alert for new publications

Never miss any articles matching your research from any publisher
  • Get alerts for new papers matching your research
  • Find out the new papers from selected authors
  • Updated daily for 49'000+ journals and 6000+ publishers
  • Define your Scifeed now

SciFeed Share & Cite This Article

MDPI and ACS Style

Lleo, S.; Ziemba, W.T. The Swiss Black Swan Bad Scenario: Is Switzerland Another Casualty of the Eurozone Crisis? Int. J. Financial Stud. 2015, 3, 351-380.

Show more citation formats Show less citations formats

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Int. J. Financial Stud. EISSN 2227-7072 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top