Bonds

M&G's Michael Riddell has put 10% of his International Sovereign Bond fund portfolio in Italian government bonds in anticipation of a fresh liquidity injection from the European Central Bank.

Spain has sunk further into recession, after official data showed its stricken economy shrank by 0.4% in the second quarter of this year.

Sales of UK-listed funds have fallen to their lowest level this year, the Investment Management Association (IMA) has revealed.

There are no longer any risk-free assets for investors to buy, after a spike in the price of a range of government bond safe-havens, Franklin Templeton's fixed income star Michael Hasenstab has said.

Investment bank Citigroup has forecast a 90% chance Greece will leave the euro in the next 12 to 18 months.

J.P. Morgan's Nick Gartside and Barings' Alan Wilde have warned the UK's AAA-status is at risk of downgrade following the shock contraction in the second quarter's GDP.

M&G is to explore ways to slow inflows into Richard Woolnough's £6.3bn Corporate Bond and £5bn Strategic Corporate Bond funds.

Schroders' head of UK and European credit Adam Cordery has left the firm.

Global equity markets are tumbling this morning as the eurozone crisis once again takes centre stage, with Spain's debt costs leaping to a new record high and speculation returning Greece will exit the single currency.

Aberdeen Asset Management has seen assets under management fall in the second quarter of 2012, after it deliberately curbed inflows into some of its most popular emerging market equity funds.