1/2 VIEW: Bank of America noted the following...>

SNB: 1/2 VIEW: Bank of America noted the following on Wednesday: "The headline

figures for Swiss FX reserves in March are misleading, in our view. : Our

analysis suggests the SNB's sizeable equity holdings are responsible for the

fall in March FX reserves. We estimate that the SNB spent CHF20bn to support

EUR/CHF through March. Our analysis also suggests that swings in SNB equity

holdings are having an increasingly larger impact on Swiss FX reserves. Weekly

sight deposit data suggest the pace of intervention is accelerating through

April. The latest data shows largest 4wk increase in deposits since the EUR/CHF

peg was disbanded in 2015. CHF appreciation has been a persistent theme since

2018. Historical correlations to risk metrics such as FX volatility seemingly

have broken down. This suggests a price insensitive buyer of CHF has been

present. Our a priori assumption is that central banks have been adding CHF to

reserve holdings which explains the strong correlation to gold over the past

year. CHF reserve holdings are back to their highest levels since Q3 2018. With

world uncertainty still elevated - we would expect continued CHF accumulation by

reserve managers..."