Debt

According to Bob Jolly, Schroders’ Head of Global Macro, considerable bad news is already in prices and corporate bonds issued by strong companies with cash on their balance sheet and pricing power remain attractive

Several opinion leaders have started a public debate regarding the possibility to breakup the Euro and return to the former local currencies. In light of this debate, we look at the possible implications of this break-up scenario for companies active on the Euro capital markets.

Global Macro managers explicitly follow defensive strategies: short exposure to equities (around -20%) and long exposure to the US sovereign debt. On their side, CTAs managers are more aggressive...

Back in the 1950s equities were seen as yield products, being as utility type assets. It was only from the 1960s that stocks were seen as growth assets. 2011 has been a watershed because yields have exceeded bond yields

The current crisis is multiple. Initially sovereign and financial, it then became a social and political crisis. These changes do not facilitate the assessment of the situation, let alone the implementation of solutions. Back on the various facets of the crisis.