Investec's joint head of fixed income John Stopford says developed market sovereign debt, the search for yield, and inflation will be the three dominant themes this year.
Stopford, manager of the £596m Global Strategic Income and £269m Strategic Bond funds, says the debt crisis in peripheral Europe will cause markets to remain volatile. However, these problems are not confined to Europe, as other developed markets including the US and Japan will find themselves in an unsustainable position in terms of financing. The manager says this is making investors nervous about holding large amounts of developed government debt, but could prove positive for GEMs. "We would expect this to have negative implications for developed markets, but it may also serve t...
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