Thanks DC for the link to this Bloomberg story. The Swiss government is selling out of its stake in UBS and will likely find institutional investors to take the entire stake.
This might actually be good for the CHF if the market sees the whole US Govt/UBS saga now being put to rest. Many people have shorted the CHF as this story has unfolded. As we know, the SNB/BIS double-team have been trying to hold up EUR/CHF and I suspect that the market is quite long in expectation of them remaining in the market. If stops start running and the SNB doesn’t appear, then we may get a short-term rout.
