While balance sheets mostly remain strong, profitability was already weak going into the current crisis
Blackrock’s chief investment strategist Richard Turnill believes “monetary divergence” between the US and the eurozone is creating investment opportunities. The assertion is certainly contrarian.
You may be forgiven for not staying up late this Sunday to watch the final results of Germany’s parliamentary elections come in. While Chancellor Merkel is sure to win, the scale of her victory is likely to impact the future direction of bond spreads.
Many European investors have been reducing the duration of their bond portfolios following the spike in bond yields at the end of 2016. But they have been calling the end of the 30-year bond bull market too quickly, believes David Zahn, head of European fixed income at Franklin Templeton Investments.
Whereas equity markets have quickly shrugged off the result of the US presidential elections, peripheral bond spreads have widened since. Trump’s election seems to have reminded markets of the possible consequences of an Italian no-vote in next week’s referendum.
In this video interview, Franklin Templeton’s head of European fixed income David Zahn explains how he sees great opportunities to make money from the Brexit referendum and the ensuing volatility. He also outlines why he thinks the dollar will resume its upward path.
In this video interview, Franklin Templeton’s head of European fixed income David Zahn explains why he is redeploying his assets from government bonds to corporate bonds. He also challenges the notion that rising Fed rates mean the dollar will strengthen in the medium term.