Dropping Bunds as the Benchmark
Friday, October 2nd, 2020 Categories: Eurozone, Government Bonds, Harlyn's Process
Europe is on the way to debt-mutuality
It’s time to restructure our euro-denominated fixed income portfolio. The yield on 7-10 year German bunds is too negative for comfort and they no longer offer the best way of creating risk-efficient portfolios. A pan-euro index of government bonds with the same maturity has done this more effectively for the last two years and we believe it offers a safer and more liquid benchmark asset.