The ECB plans to stop its corporate bond-buying scheme early in the third quarter
Under its corporate bond-purchasing programme, the ECB owned €341bn of companies’ debt at the end of May — having ratcheted up its holdings by almost €140bn since the early days of the coronavirus pandemic in March 2020.
But now, the central bank plans to halt the vast scheme early in the third quarter of this year, before raising interest rates in a bid to cool surging inflation.
FT 8 June 2022
https://www.ft.com/content/c7f1c176-3e19-45fe-958c-a02ef5bcea1a
Bridgewater is betting on a sell-off in corporate bonds this year as the world’s biggest hedge fund takes a gloomy view on the trajectory of the global economy.
High-grade US corporate bonds are down about 12 per cent this year on a total return basis, while those in Europe have fallen 10 per cent in local currency terms,
FT 8 June 2022
https://www.ft.com/content/a206e3d7-fc89-4e95-9d20-32cc99d97938
Why Ray Dalio’s Bridgewater started betting against U.S. and European corporate bonds
Hedge-fund giant expects inflation to be much more persistent than Fed anticipates
Bridgewater manages more than $150 billion, making it the world’s largest hedge fund by assets under management.
Bridgewater is best known for these kinds of “macro” bets — that is, bets on bonds, currencies and stocks that are based on broad economic trends, as opposed to picking and choosing individual stocks to buy or bet against.
MarketWatch 8 June 2022
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