While the plunging euro has grabbed most of the headlines, Iain Stealey, manager of the J.P. Morgan Global Bond Opportunities Fund, says the gyrations underscore a more fundamental point for bond investors: the need to be nimble.
Investors concerned by eurozone political rumblings should seek protection via the US dollar, says Legal & General Investment Management’s Justin Onuekwusi
Bond yields are going to get progressively tighter as liquidity from ECB QE trickles down through sovereign and corporate debt markets, says TwentyFour Asset Managements Gary Kirk.
More realistic consensus expectations on European companies’ earnings this year than last are paving the way for potential upside, says Allianz Global Investors’ Marcus Morris-Eyton.
The size of the European Central Bank’s QE programme has forced a rethink of growth expectations for the region, but there are still many reasons to worry.
The European Central Banks quantitative easing injection should be positive for corporate bond investors, but only if they play their cards right, M&G Investments Richard Woolnough and Stefan Isaacs said.
Headline eurozone figures should not be taken as representative of the wider picture, according to Societe Generales Eric Verleyen.
Investors can circumvent the ‘euroglut’ stemming from ECB QE by holding sterling bonds from UK and eurozone-based companies, says Rathbones’ Bryn Jones.
The Organisation for Economic Cooperation and Development has cut its global economic growth forecasts due to concern over the impact of the sluggish eurozone economy and geopolitical trouble spots around the world.
This coming Thursday the European Central Bank will provide its latest monetary update and it is not likely to be pretty.
The ratcheting up of sanctions against Russia by the European Union has cast an economic shadow over the ECB meeting coming up on 7 August.
Markets are likely to see some bumpy times in fixed income markets as revised interest rates in the US could happen sooner than many investors now expect.
