What a summer we have had in bond markets! The US and French bank downgrade, limited policy flexibility, aftermath of the Japan earthquake, rising commodity prices and sovereign and banking concerns already had markets on edge. A further deterioration in leading economic indicators has proved to be the straw that broke the camel’s back, leading to a sustained bout of risk aversion causing volatility, fear, and opportunity.
Richard Woolnough recently did a teleconference that covered the main themes we are currently interested in on the bond desk and how his funds are positioned. There was also an opportunity for clients and press to ask Richard questions on the outlook.