European equities carnage as Greece saga takes another twist
Markets around the world have once again been spooked by Greece as the European Central Bank limited funding over the weekend and capital controls were imposed.
Markets around the world have once again been spooked by Greece as the European Central Bank limited funding over the weekend and capital controls were imposed.
European investors have responded to the recent slump in European bond prices by swapping their long-only fund holdings for absolute return funds, Morningstar’s latest fund flows report reveals.
Outflows from bonds funds have continued at a remarkable pace with high-grade funds suffering outflows of $3.01bn over the past week, the largest since the ‘taper tantrum’.
Axa Investment Managers is preparing for a “major initiative” into the renminbi bond market with a significant shift within its emerging market debt offering.
Emerging market debt and high yield bonds, which have had some pretty high inflow volatility recently, are now firmly back in favour with European investors.
Eaton Vance Management has expanded its international credit offering with the launch of a multi-sector income vehicle.
Fitch Ratings has said a gradual hike in the United States’ base interest rate would likely result in lower profits and slower growth, due to increased borrowing costs for US companies.
Increasing bond market illiquidity may be causing investors to buy funds with miscalculated ratings, according to Fundhouse.
With liquidity shrinking, volatility rising and the spectre of a first rate hike since 2009 looming ominously, it would be understandable to think that new bond fund launches would be few and far between.
Increasingly nervous fund managers are swiftly pulling money out of equities funds in favour of cash, according to June’s Bank of America Merrill Lynch fund manager survey.
The events of recent weeks could lead investors to draw a stark conclusion; there is no such thing as a ‘safe haven’ in investment terms any more.
Benchmark 10-year bond yields in the eurozone have more than doubled since the end of April, when they reached an all-time low.