Barings' Cole: Why we bought £350m in Italian bonds

Natalie Kenway
clock

Barings' multi-asset team has bought £350m in Italian government bonds in the expectation European banks will use the ECB's Long Term Recovery Organisation (LTRO) to buy government debt.

Andrew Cole, the director of strategic policy who works alongside head of multi-asset Percival Stanion, said although other fund managers may look on them buying up Italian government debt "in horror", they will soon understand why when yields fall further. "We have been increasing exposure to risk assets over the past six weeks and we have been reducing our Australian government debt exposure in favour of Italy. "We think the banks in Europe will utilise the LTRO facility, leading to the risk of a bank or financial institution's collapse to be diminished, and use this liquidity to bu...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Economics

The listed wind energy sector has undergone a "valuation boom"
ESG

European ESG equities Deep Dive: Macro outlook turning favourable

Cautious over 'valuation boom'

Kathleen Gallagher
clock 30 June 2022 • 4 min read
The Bank of England said last month that it anticipates UK inflation will top 11% in October.

Andrew Bailey: Soaring inflation to hit UK economy harder than other nations

0.5pp hike on the table

clock 30 June 2022 • 2 min read
The ETFs aim to overcome traditional yield shortfall by using multi-factor investing.

Invesco launches two ESG credit ETFs

Invesco has launched two new ESG ETFs that provide investors with access to investment grade fixed-rate euro-denominated unsecured corporate bonds from global issuers.

clock 29 June 2022 • 2 min read
Trustpilot