Managers’ appetite for Southern European debt continues to climb
Asset managers’ interest is picking up again on peripheral Europe’s sovereign debt.
After months of caution, managers’ willingness to buy Spanish and Italian bonds increased steadily over the last weeks, as confidence on the ability of the European Central Bank to implement its government bonds purchase plan became more widespread.
Among the firms who have showed interest to move to Southern European assets are JP Morgan, Standard Life Investments, and BlackRock.
Speaking to the press, Bill Gross, founder and co-chief investment officer at Pacific Investment Management Co, said he recently bought Spain and Italy’s government bonds believing this could ease tensions on the two economies.
Gross manages Pimco’s flagship $278bn Total Return Fund and until recently held a very pessimistic views on the eurozone.