Risk-averse conditions offer opportunity

ON BONDS

Invesco Perpetual's Michael Matthews says a volatile environment is a good time to reassess prices across the investment universe.

The sovereign debt crisis is causing regular bouts of market jitters. Investors have lots to worry about: the immediate budgetary problems of Greece, Ireland and Portugal; signs borrowing costs are rising to worrying levels for governments of bigger eurozone countries; and political rumbling about the support packages from the EU and IMF. All this is playing out against a backdrop of worsening indications for European growth. It is not surprising volatility has ticked up in European markets. The VStoxx is near its highs for the year and the volatility of bond returns has also risen. W...