M&G's Riddell sells out of Italian government bonds

M&G's Mike Riddell has sold out of his position in 5- and 7-year Italian government bonds ahead of a possible sell-off following the country's general election.

The manager of the £81m M&G International Sovereign Bond fund has sold his 7% position in short- and medium-dated debt, which he has held since July last year, as yields have fallen to 2.7%, compared to 6%-7% when he opened the position. Riddell (pictured) said there is the potential for more political noise following the election, which could lead to a general risk sell-off when combined with US debt ceiling problem. He first bought into the bonds as part of a risk-on strategy within the fund, buoyed by ECB president Mario Draghi's pledge to do "whatever it takes" to save the euro. ...