Interest rate threat to sovereign bonds is overblown
Rising interest rates are generally accepted as a poor environment for sovereign bonds, says Rathbones’ head multi-asset investments David Coombs, but has the danger been oversold?
Author: David Coombs
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Eurozone optimism misguided Coombs
Many see the eurozone as the recovery story of the next few years. At the time of writing, data from provider EPFR shows $35.6 billion has flowed into European equity funds so far this year. However, we believe there is more chance of disappointment in the medium-to-long-term, as structural problems continue to dog the continent.
