Thanks! I was also thinking this, that is why I asked.
Thank you! Do you now invest in Swiss bonds? Can I ask you which one? It’s interesting what you say.
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Actually my pension fund already has lot of bonds. So in my taxable account , I have less bonds.
Whatever bond allocation I have is using following -:
- ishares corporate bond Switzerland ETF (CHCORP)
- CS Blue Swiss Corporate Bond Fund (CH0281860343)
The reason I selected corporate bond ETF/fund is following -:
- corporate bonds have higher yields vs Govt. Risk rating is reasonable for these funds
- with ETF/Fund I spread my risk across many companies rather than just few
- costs of buying bonds in CH is quite high and it takes away the income. IBKR doesn’t sell them, Swissquote does sell
- minimum purchase size for bonds is higher , so even if I want to buy different ones, it can become expensive
Fun fact -: there is no stamp duty on purchase of funds. But there is a buying spread. ETF has a stamp duty applicable.
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Thanks a lot for your information, it is very helpful.
To be honest I was hoping that the returns of at least the corporate bonds were higher 
like 2% or so.
I have to think about it, maybe for not very big investments it’s not worth it.
Thank you!
Indeed. It’s around 1.5-1.6% (after fees) for the ETF.
Keep in mind, it’s an ETF which works different than individual bond. ETF never matures. so in order to ensure that you lock in your yield, safe rule of thumb will be to hold the ETF for 2X the duration. I read about this rule of thumb at link below , they also have a simulator to see impact of interest rates changes.
I think the risk premium for Corporates versus Swiss govt is less than 1% for same durations.
There are few companies which have higher yielding bonds but they also have higher risks. They can be found in Bond Explorer at Swissquote