Big Bond Traders Double Down on Their Bet on Europe
- Pimco is overweight Italian and Spanish sovereign debt
- Axa says Italy’s 10-year yield could decline to 0.75%
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Not even the calamity of disease, debt and Italy’s fiscal woes are enough to stop the world’s biggest money managers from a trade that’s at the heart of Europe.
Investors at Pacific Investment Management Co., Axa Investment Managers and AllianceBernstein Holding LP are counting on bond prices climbing in Europe’s weakest countries, even with yields already hovering near all-time lows. In Italy, Europe’s first epicenter of the crisis, bonds have rallied to pre-lockdown levels and the 10-year rate is now a paltry 1%.