Loading ...Re Bunds
A good reason they are talking Bunds, is because the losses are going to be horrific and in Funds that are sold as super cautious…….Clients will be steaming mad, as the Funds should never lose this sort of money.
Vast spread trades, where you are short German rates, and long anything else, where you are looking for German rates to move much less than anything else…..will be on….and now suddenly German rates shoot up, way more than all the other rates…Because the Euro is made up of all those different currencies, but you still have different Bond/Note mkts…..and since the Euro was created the German rates were the benchmark……
I also think the EU has asked pension funds to dump US assets, to make Trump look bad….particularly the SM….if that recovers…then EU pensioners and others will lose vast amounts…..