Citigroup

ONE TO WATCH

FINANCIALS

Bond managers have been steadily increasing the use of credit default swaps (CDS) in their portfolios as liquidity issues which emerged in the corporate bond space last year continue to plague the sector.

Fund managers are starting to buy back into UK-listed large-cap miners, seeing valuations as too good to refuse as wider sentiment on the sector hits a "decade low".

Legal & General Investment Management's fixed income manager Richard Hodges has cautioned investors to be prepared for another four years of record low interest rates in the UK.

Italy's embattled economy contracted 2.8% year on year in the fourth quarter, according to the final reading released this morning, worse than the 2.7% contraction previously thought.

Sanlam's top-performing financials manager Kokkie Kooyman has warned investors they should be wary of owning companies which are highly correlated to equity markets ahead of an expected correction.

Analysts at Citigroup have hiked their 2013 FTSE 100 forecast to 7,000, suggesting the UK's blue chip index can still add another 10% by the end of the year.

The Bank of England's Monetary Policy Committee (MPC) has once again kept interest rates unchanged and quantitative easing on hold in a widely expected decision.

Stephen Docherty, manager of the Aberdeen World Growth and Income fund, reveals how he is currently positioning his portfolio.