Amundi Strategy Insight – October 2013
Economic outlooks are improving but still remain fragile. Today, investors’ scenarios expect US monetary policy to tighten and the yield on US Treasuries to rise. In contrast, the ECB reiterated that its monetary policy “will remain expansive for as long as needed” and that it will continue to provide liquidity to meet banking needs. Against this backdrop, investors are becoming increasingly cautious now that they are faced with the risk of rising interest rates. In such an environment, what is the way to position oneself on the euro market for private Investment Grade (IG) bonds? What is the best hedge against increased interest rates? What are the best opportunities still available on this market?