Fitch sees 'limited contagion risk' from bond funds
European emerging-market bond funds pose limited contagion risk to the broader financial system in light of the conflict in Ukraine, rating agency Fitch said on Monday. The funds have low exposure to Russia, Ukraine and Belarus, which should limit the risk of a large increase in redemptions.
After false start, review sets up Eltifs for success
A comprehensive review by the European Commission has the potential to put the European long-term investment funds (Eltif) regime back on track and set it up for the kind of success Ucits funds have experienced. Eltifs can become competitive with AIFs by removing many factors that made Eltif take-up much lower than had initially been hoped. The investment community has been broadly supportive of the reset.
Russia-Ukraine crisis: what are the impacts?
We have decided not to purchase any Russian securities until further notice.
The Russo-Ukrainian conflict induces a stagflation risk for the global economy.
Supervisors step up efforts to maintain financial stability
Financial supervisors in Luxembourg and elsewhere in Europe on Monday stepped up their efforts to maintain financial stability, protect investors and ensure the orderly functioning of markets as part of the European Union’s overall response to the “tragic consequences” of Russia’s military aggression.
'Good moment to move into green bonds'
It is a good moment for investors to green their bond portfolios. The asset class is considered attractive after the rise in interest rates in recent months and the increased risk premiums stemming from the Ukraine war, Johann Plé, senior fund manager fixed income at AXA Investment Managers, told InvestmentOfficer.
IMF concerned over rising house prices in Luxembourg
Luxembourg’s financial system has weathered the pandemic well, but the Russia-Ukraine conflict poses new risks to Luxembourg’s economy while the surge in housing prices from recent years threatens the attractiveness of the Grand Duchy, the International Monetary Fund (IMF) has concluded after a two-week mission.
PGIM Investments: Credit Markets: Alpha Opportunities Abound?
PGIM Fixed Income believe economic conditions are primed for continuing upgrades in credit markets.
UBS AM: Inflation yet to peak
Just as the COVID-19 pandemic appeared to be behind us, a war has started as Ukraine was invaded by Russia. We are not anticipating significant direct impacts on the European property market outside of CEE.
‘Switch to low carbon era may disrupt financial system’
An abrupt and disorderly transition to a low carbon economy risks disrupting the financial system as a sudden implementation of climate change mitigation policies can increase transition risks, a new European Central Bank study said on Friday.
The ECB’s researchers raised the prospect of “severe banking system losses” if no additional policy action is taken. These losses could reach “up to 40 percent more” compared to a baseline scenario where no policy action is taken.
Top 5: European equities offer value and dividends
While US companies are generally praised for their quality, strong competitive advantages and high growth prospects, European equities are significantly less popular. Although most fund managers seem to have less faith in European equities, they are generally popular with value and dividend investors.