SNB Financial Stability Report 2018

From snb.ch

Economic and financial conditions for the Swiss banking sector have remained favourable over the last 12 months. At the same time, tail risks have increased, as a range of asset classes look highly valued by historical standards and political uncertainty is elevated. Along with a strengthening in economic growth, markets have generally been optimistic about global credit quality. This is indicated, for example, by the fact that credit rating upgrades exceed downgrades and by low credit risk premia. In this environment, share prices have risen overall and volatility on bond and foreign exchange markets has remained ... (full story)