As regulatory-driven investment forces a more passive investor base into the bund market, the Eurosystem will become the single biggest holder of bunds by the end of this year, predicts HSBC. Bert Lourenco points out in his July 12 research piece titled “Bunds-hostage to the ECB” that as long as QE persists and trading volumes and yields fall, signs of stress in the bund market will likely worsen. Demand for bunds from German pension sector to persist Lourenco believes that following the 2008 crisis, monetary policy has continued to push down on all forms of premia, and although bond returns…
Eurosystem Will Likely Become Single Largest Holder Of Bunds: HSBC
Mani
Mani is a Senior Financial Consultant. He has worked in Senior Management role in large banking, financial and information technology organizations. He has provided solutions for major banking and securities firms across the globe in the area of retail, corporate and investment banking. He holds MBA (Finance) and Professional Management Accounting Qualifications. His hobbies are tracking global financial developments and watching sports