Turbulence in bond markets has left bond investors nervous and cash piles high but while more movement is expected, certainty on a few issues could see investors moving back into the market during the second half of the year.
Greece leaving the euro will not come to pass and is nothing more than a “distraction issue”, says Kames CIO Stephen Jones.
Sales of UCITS-qualified funds outstripped their non-UCITS counterparts by 419% in April, according to research by the European Fund and Asset Management Association.
Benchmark 10-year bond yields in the eurozone have more than doubled since the end of April, when they reached an all-time low.
Investors need to moderate their return expectations from European equity markets due to high valuations, according to JP Morgan Asset Management.
Pictet Asset Management has shifted some of its high-yield exposure over to sovereign debt.
Inflows into the European exchange-traded fund space hit their lowest ebb for six months in May, according to a BlackRock report.
The FTSE 100 fell significantly as markets fretted over whether Greece will fail to reach a deal with its creditors and default on its €300m International Monetary Fund payment tomorrow.
European Central Bank president, Mario Draghi told journalists on Wednesday that markets should get used to higher levels of volatility.
Global markets are being driven by an addiction to central bank policy rather than economic fundamentals, says Barings’ Marino Valensie.
The General Election may have dominated the headlines this week, but bond investors should be much more concerned by the bund price plunge, says Miton Asset Management’s David Jane.
The European equities space is poised to receive a wave of foreign capital as overseas investors run out of reasons not to buy, said Tony Lanning, manager of JP Morgan Asset Managements Fusion fund range.
