- European insurers: the case for going global in the credit allocation
European insurers: the case for going global in the credit allocation
Wednesday 13 January 2021
Research / Market
In the hunt for yield, some years ago European investors started to allocate part of their credit exposure to dollar assets. However, many then put a stop to this diversification due to high hedging costs. In the context of the Covid-19 outbreak, the Fed cut rates to post-Lehman lows. Consequently, euro and dollar interest rates converged significantly, reducing hedging costs and making a case for broadening the investment universe from a European to a global base more attractive...
Cross Asset Investment Strategy - January 2021
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