Europe

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Investment analysis: Are we seeing a strange new world for the bond market?

The combination of low inflation growth and excess liquidity following the ECB’s quantitative easing programme has distorted bond valuations, with some short-duration instruments now offering negative returns. At the beginning of March nearly $3.85trn (£2.56trn) or 17 per cent of developed market global government bonds traded at negative yields, according to Columbia Threadneedle Investments. In […]

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IMF knocks back Greek hopes of loan extension

The International Monetary Fund has rejected requests from Greece to extend the deadlines on loan repayments, according to reports. IMF managing director Christine Lagarde said yesterday that Greek ministers should instead focus on restructuring the debt-ridden nation’s economy rather than seeking an extension, the Wall Street Journal reports. “It’s clearly not a course of action […]

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Asset allocation: Rathbones’ David Coombs on why euro QE is four years too late

The European Central Bank’s decision to finally kickstart a quantitative easing strategy has in turn spurred much elation with many fund managers upping their allocation to the embattled region. The Bank’s €60bn-a-month bond buying programme has raised hopes that not only will the initiative help repair the currency bloc’s economy but that it will push […]

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Investment analysis: What’s next for the ‘triple zero’ eurozone economy?

The eurozone is breathing easier these days thanks to the European Central Bank’s quantitative easing programme. The central bank raised this year’s Eurozone growth forecast to 1.5 per cent up from 1 per cent previously. Eurozone consumer prices fell by 0.1 per cent in March 2015 from a year earlier, suggesting that fears of continued deflation […]