The last few weeks have been a fascinating period with the developments in Spain, France and Greece all jostling for headlines alongside weaker economic data. Chris Bullock, Corporate Bond Portfolio Manager at Henderson, provides an insightful view into what has passed – and is likely to come to pass – in the future.
While bunds, gilts and US Treasuries have rallied, equities and credit markets have weakened. There are a number of upcoming events in the Eurozone that could rock the boat further in Europe, but there are also logical solutions that could alleviate the pain. The tough question, however, is whether European leaders are either willing or able to put in place the firewalls necessary to stabilise the situation.
Chris remains defensively positioned, anticipating more volatility, while keeping an eye on the opportunities that surface as a result.