Germany

COLLINGS' CORNER

ON EUROPE

Barings' Colin Harte believes fixed income investors favouring corporate debt over gilts have become too concerned about the fragility of the UK's AAA rating.

Morgan Stanley has warned Germany could withdraw from the eurozone as the fallout from the Greek debt bailout continues.

Euphoria over a joint EU-IMF rescue deal for Greece worth €45bn (£39.8bn) appears short-lived, after angry reactions in Germany and continued concerns among bond investors any bail-out merely delays the worst.

Aegon's fixed income team has been utilising a number of sovereign debt pair trades in its Strategic Bond fund to take advantage of an uneven global recovery.

Chinese money supply and loan growth - at over 30% - is out of control.

Baring Europe Select Trust manager Williams foresees increased interest in low-valued European companies

The Greek budget deficit saga drags on: all the excruciating metaphors now exhausted, there remains just the long grind to a compromised conclusion involving soggy sovereign yields and increasingly disinterested investors.

It may be one of the best explanations yet for why the global financial crisis occurred: genuine relationships got processed away in what became an industrialisation of the investment business, says Elizabeth Corley, Europe CEO of Allianz Global Investors...