Political jitters send retail investors fleeing from European corporate bonds

Retail investors have fled high grade European bonds at their fastest weekly rate in seven years according to analysis from JPMorgan, highlighting escalating fears over a packed roster of major elections in the coming months.Over €1bn was pulled from investment grade euro corporate funds last week, according to the US investment bank, which is warning of the “non trivial risk of hitting an electoral landmine” in the continent this year.

Source: Political jitters send retail investors fleeing from European corporate bonds

 

We have been saying for a few weeks now the biggest risk we see is the unraveling of the EU.  We are short French, Italian, and ridiculously low interest rate 10 yr government bonds.  We are also short the euro.

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