Swiss Bond Market Eyes Blowout Sales Boosted by Alphabet’s Debut
(Bloomberg) — Corporate bond sales in Swiss francs could top 25 billion this year, far beyond the market’s normal volumes if the haven currency’s low interest rates spur more international borrowers to follow Google parent Alphabet Inc. in to the market.
US technology giant Alphabet raised almost $32 billion in a one-day debt frenzy earlier this month that spanned dollar, Swiss franc and sterling debt, according to data compiled by Bloomberg. The sales in the latter two currencies were the biggest-ever in those markets and the five-tranche, 3.055 billion Swiss franc ($3.95 billion) transaction has pushed year-to-date sales in the currency to the highest in at least a decade, the data show.
“With 5.5 billion Swiss franc corporate supply year-to-date, we are about 40% above the 2025 run rate,” said Deutsche Bank’s Head of CHF Syndicate Christian Spahn. “This might slow down a bit over the coming quarters, but we see a realistic chance to reach a corporate issuance volume of over 25 billion Swiss francs in 2026, albeit with a strong skew towards international corporates,” he added.
The sales mark a trend of global corporates turning to the Swiss franc bond market to diversify their funding and benefit from a favorable rate environment and low foreign exchange swap costs. A robust deal pipeline and syndicate desks preparing for an influx of international mega-deals suggests the trend is set to accelerate this year.
France’s Air Liquide Finance SA is set to price a triple-tranche Swissie offering on Tuesday, according to a person with knowledge of the sale, who asked not to be identified as the information is private. It’s marketing notes due in 2031, 2034 and 2038 in its debut foray in the currency, according to data compiled by Bloomberg.
“It makes sense if you’re looking to issue corporate debt in a low interest rate environment, Switzerland, Japan and other low-rate countries are very attractive,” said Kamal Sharma, G10 FX Strategist, Bank of America Global Research. “It’s another form of carry,” he added.
The franc has gained around 2% against both the euro and dollar so far in 2026. Investors have come to treat the Swiss currency as the purest safe haven on the market and this sentiment has seen it climb to its strongest levels in more than a decade against both currencies this year.
The dollar lost 13% against the franc in 2025 and this sustained weakness has been a key driver for the Swiss currency’s advance.
To be sure, while a growing number of international borrowers start to look at Swiss francs for their funding, the pace and volume of transactions could depend on how the US Federal Reserve tackles inflation and whether rate cuts emerge. The Fed held benchmark rates at its last meeting in January and is next set to meet in March.
In contrast, geopolitical uncertainty stemming from the US over tariff policies could boost the attraction of tapping alternative funding markets, with a growing number of borrowers seeking to raise huge amounts of cash for things like artificial intelligence projects.
The phenomenon is not restricted to tech firms — corporate giants in other industries have also turned to the Swiss funding market, with Danaher Corporation raising 1.25 billion francs across five tranches in October and Thermo Fisher Scientific Inc. and construction equipment maker Caterpillar Inc also raising debt in the currency.
US corporate issuance outside of the US – a move widely called the “reverse yankee” trade – has been a growing trend over the past years as multinationals seek ways to diversify funding. The European corporate bond market has also largely been a big beneficiary of euro denominated debt issued by US corporates amid the de-dollarisation debate.
See also: Wall Street, Big Tech Send Reverse Yankee Volumes Past 2007 High
–With assistance from Bastian Benrath-Wright and Tasos Vossos.
©2026 Bloomberg L.P.
