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Old 10.10.2008, 17:37
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Re: How Safe is UBS

Forgot to say, I am asking about the redemptions because if the ... hits the fan regarding Swiss banks, it might be THE DAY today to change your francs into various currencies. I noticed too that for the first time in the past few weeks, the panic buying has switched from buying Yen to CHF again. (The rate of JPY/CHF dropped, whereas it has had a steep climb recently).

Edit: yes I know it is related to the carry trade unwinding, so for example the Australian dollar has lost about 25% against the Franc (and probably the Yen). Presumably, the Yen has increased against the Franc because of the carry trade unwind as well.

But what struck me is that today, that situation has reversed! The franc is gaining against the YEN, on a day where I cannot imagine the carry trade picking up again...

So safe haven buying has mightly accelerated today, but the CHF gain might be shortlived if UBS drops a news bombshell. Edit, sorry I should Credit Suisse here perhaps. Thanks Bananahead.

Last edited by muze7; 10.10.2008 at 21:29.
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