BlackRock's European bond head says will buy Italy debt on election clarity
Reuters
Published Dec 06, 2016 16:11
BlackRock's European bond head says will buy Italy debt on election clarity
LONDON (Reuters) - A top bond investor at BlackRock, the world's biggest asset manager, said on Tuesday that his fund would exit a long-held underweight position on Italian debt if there were signs the country was not headed back to the polls early next year.
Italy could hold an election as early as February, a minister in Matteo Renzi's outgoing government said on Tuesday after speaking with the prime minister.
"To get back to overweight we would need clarity that there are no new elections in the next six months," Michael Krautzberger, BlackRock's head of European fixed income told Reuters.
Krautzberger said he had been underweight Italian government bonds for the last three or four months, but had reduced that slightly ahead of Sunday's constitutional vote. He said he was also underweight French and Dutch debt in the euro zone, both related to uncertain election outcomes in those countries next year.
Turning to Thursday's European Central Bank meeting, Krautzberger said markets would be disappointed if the central bank did not extend its asset purchase scheme at its current pace for six months, or at a slightly slower pace for 9-12 months.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.