Most recent articles by Christoph Schon, CFA, CIPM
Stormy week for Gilts; Less negative relationship between equity and fixed income drives portfolio risk higher
Last week, Gilt yields took a choppy ride, starting with an 8-basis point surge in the 10-year benchmark rate on Tuesday to its highest level since April 2012.
So, the opinion polls don’t always get it wrong after all!
One lesson we have learned from these recent referendums and elections is that voters cannot be relied on to do what politicians, and financial markets, expect them to do.
Gilt yields fall after surprise election result; Pound down, FTSE up in familiar pattern
Last week, we saw British Gilts outperform their US and German counterparts, as the general election on Thursday, June 8, resulted in a so-called “hung” parliament.
Gilts underperform as FTSE reaches record high; Declines in FX and equity volatilities reduce portfolio risk
Last week, we saw British government bonds underperform their US and German peers, while the same-maturity Treasury and Bund rates fell.
Pound takes a hit as political uncertainty increases; Portfolio risk rises as stocks and FX become less negatively correlated
Last Friday, we observed how the British pound dropped 1.2% versus the US dollar, as uncertainty increased around the outcome of the UK general election on June 8.