US cut lures investors, but best opportunities may be short-lived
European investors are eyeing the rapid price shifts in the US bond market, driven by expectations of interest rate cuts. While the rise in US government bond prices has been enticing, seasoned investors are now questioning how long this rally can last.
M&G Investments: Bonds are back after years in the dark
As inflation has started to normalise, many market observers have started to find bond markets attractive again. Yields have risen to their highest levels in over a decade. Corporate debt has recovered, making bond investors comfortable after years of bad returns.
German court paves the road for more debt in Europe
German judges handed down an important verdict this week: EU treaties are no obstacle to shared debt in the union. The ruling comes shortly after the European Commission called for new joint injections into the economy. “As an investor I would carefully reconsider my bond portfolio,” one critic warns.
On Tuesday, the German constitutional court in Karlsruhe ruled that “exceptional” EU loans to overcome problems caused by the Covid-19 pandemic do not violate European treaties.
2022 to be capital markets tipping point year
2022 will be another exciting year for financial markets. Investors operate in an environment of persistent inflation, foggy central bank policy and uncertainty about the Omicron variant. It is a search for yield and protection in the portfolio. But how?
Pimco thinks outside the box to generate additional bond yield
Pimco is not too worried about the economic slowdown and rising inflation, as these are largely related to a temporary disruption. Opportunities in the credit and bond markets have become scarcer and finding them requires a lot of effort.
This is what emerges from an interview with Eve Tournier, Head of European Credit Portfolio Management at Pimco and manager of the GIS Euro Credit Fund, among others.