The current environment of rising correlations and falling yields means investors are compelled to seek alternative defences, as the traditional diversification ballast of a mix of lower and higher risk assets is no longer effective. This means challenging and rethinking widely held approaches to portfolio management. Within the fixed income arena, current market conditions mean […]
Douglas Peebles, CIO and head of Fixed income at AB warns that investors should pay close attention to the performance of bonds in their portfolio. The bond market is probably in for more turbulence in 2016, and investors may have to make some course corrections along the way. Staying airborne in these blustery conditions requires […]
Edmond de Rothschild Asset Management (EdRAM) has proceeded to several appointments in UK, the rest of Europe and Asia The firm has appointed Agnès Belaisch as head of the Asset Allocation and the Sovereign Debt Team. She will be based in London and will report to Benjamin Melman. Prior to joining the firm, Belaisch was in charge […]
We are monitoring Greece events closely, but the volatility it is causing will not derail the European recovery elsewhere. Should the referendum approve the creditors’ package we expect markets to rally sharply. Volatility will remain elevated while investors assess the likely path of the referendum. Opinion polls at the weekend, taken before the referendum announcement, […]
Holger Fahrinkrug, Chefvolkswirt bei Meriten Investment Management warnt angesichts anhaltender Verhandlungen zu den griechischen Staatsschulden vor unrealistischen Erwartungen. Die Aktivitäten dieser Woche gelten (mal wieder) als Griechenlands letzte Chance, vor Ablauf des zweiten Hilfspakets am 30. Juni Zugeständnisse seiner Gläubiger durch belastbare Reformzusagen zu erwirken und so den drohenden Staatsbankrott zu verhindern. Nach Monaten zähester Verhandlungen hat die Regierung […]
Greece is searching for cash that could give it time to continue discussions with creditors but it is unlikely it will be enough to cover domestic obligations and the bundled €1.7bn payment to the IMF. Creditors are getting tired with the negotiations; we expect a solution to be reached but only at the last moment. […]
The confrontational scenario between the Syrizia-led Greek government and its EU and IMF creditors is coming to a head: Greece does not have access to funds to meet the €2bn of IMF funding due to be repaid in June and July and the €6.5bn of government bonds scheduled for redemption in July and August (see […]
The outlook for Greece and its position in the eurozone is discussed here by Mark Burgess, CIO EMEA and global head of Equities at Columbia Threadneedle Investments: http://www.bloomberg.com/news/videos/2015-05-27/greece-s-exit-from-euro-area-is-inevitable-burgess He adds on the outlook for Europe and the US: There is an old adage in stock markets which suggests that investors should ‘sell in May, go […]
Asoka Wöhrmann (pictured), CIO at Deutsche Asset & Wealth Management (DeAWM) comments on the implications of the Greek covernment change. Greece wants to stay in the Eurozone and at the same time scale back austerity. But there is limited scope for negotiation. In ancient tragedies the players are so enmeshed that they find themselves in a hopeless situation. The […]
ECB president Mario Draghi has announced that the central bank will launch an expanded quantiative easing (QE) programme including monthly sovereign debt purchases of €60bn as of March 2015 whilst leaving interest rates for main refinancing operations unchanged. Speaking at a press conference following the monthly ECB Governing council meeting in Frankfurt, Draghi confirmed that […]
Jorgen Kjaersgaard, head of European Credit Portfolio Management, and John Taylor, portfolio manager of Multi Sector, both at AllianceBernstein London, argue that peripheral sovereign bonds offer better value than corporate bonds.
Johannes Müller, CIO for Wealth Germany at Deutsche Asset & Wealth Management, and Bodo Herzog of ESB Business School at Reutlingen University have developed a theory about euro sovereign bonds under stress, contained in a jointly authored White Paper.