Greetham buys Italian debt in expectation of ECB intervention

Fidelity's asset allocation director Trevor Greetham has bought Italian government debt at the margin in his multi-asset portfolios in expectation of ECB intervention, after yields spiked to record highs.

Greetham, who runs Fidelity's £565m Multi-Asset Strategic, £337 Multi-Asset Growth and £29m Multi-Asset Defensive funds, said some of the policy responses in the eurozone risked worsening the crisis and remains cautiously positioned. Nonetheless, he has a small tactical position in eurozone government debt to exploit any fall in yields. "I do have some exposure to Italian and eurozone government bonds at the margin because spreads are so wide. The ECB will have to intervene and buy aggressively, and at that point I will probably sell," he said. Italian 10-year bond yields have cont...