Insights

Despite the geopolitical environment, equity and FX markets remained relatively stable in 2025. Investors should watch out for shocks in 2026 and look at hedging opporunities.

The cross-currency basis is a key cost in FX hedging, driven by market shifts since 2008. Learn how it affects investors and why it persists.

The cross-currency basis is an additional cost on top of the interest-rate differential. Swiss hedgers need to be attentive to its evolution and try to take advantage of periods of stability to extend their hedges.

For Swiss investors, hedging foreign currencies has long been a no-brainer, but today high costs driven by interest rate differences make USD hedging extremely costly.