How can I buy CHF bonds? Neither IB nor Degiro have CHF bonds, is there a low cost alternative? I am looking to buy bonds with duration 1~3 months, since I have a substantial sum of cash in CHF ~100k and the bank interest rate is 0.01%.
It’s fine by me to buy corporate bonds of low risk companies (e.g. Nestle if they have CHF denominated bonds) if government bonds are not easily accessible. Or even ultra low cost (0.05% TER) money market fund. Or ETFs with maximum maturity of 1 year.
The CHF bond market is not very large compared to other currencies (it was discussed during the last votation).
There are Swiss brokers like Swissquote who offer OTC or SIX CHF bond trading but with higher fees than IB or Degiro. Money instruments with maturity below one year are usually considered money market (even though this includes bonds about to repay the principal) and with 1-3 months of duration it means paying the fees 4 to 12 times a year.
I am not a financial advisor, but for such a short duration I would probably consider money market funds as the TER and custody fees may be lower than bond transaction fees.
As an alternative to Swissquote, TradeDirect, the low cost (for swiss standards) solution from the Banque Cantonale Vaudoise / Waadt Kantonal Bank offers them.
Where can you buy Swiss government bonds for reasonable fees?
SwissQuote is quite expensive. And I cannot find the bond on IBKR.