BVTV: High drama for Italian high yield?
While political instability is nothing new for Italy, last week’s developments have triggered major market moves. The 10-year Italian government spread to Bunds jumped to as high as 288bps last week, which is an impressive move if you consider that investors were only asking for a risk premium of 122bps at the beginning of the month. Despite a rebound in markets towards the end of the week, the spread to Bunds remains elevated. In an environment where government bonds are experiencing such significant moves, I am particularly interested to see how Italian high yield credits are coping. High yield fund manager James Tomlins joined me this morning to discuss these highly timely topics – tune in to hear James’ thoughts on prospects for Italian businesses with heightened credit risk.
The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. Past performance is not a guide to future performance.
17 years of comment
Discover historical blogs from our extensive archive with our Blast from the past feature. View the most popular blogs posted this month - 5, 10 or 15 years ago!
Get Bond Vigilantes updates straight to your inbox