Vincent Mortier, Chief Investment Officer of Amundi Asset Management. (© DR)
Amundi AM’s managing director, Vincent Mortier, is considering a further drop in prices in the coming months.
According to Vincent Mortier, managing director of Amundi Asset Management, the war in Ukraine has accelerated the trends already perceptible at the start of the year of increased inflation and economic slowdown.
The reputedly “smartest” bond market showed signs of overheating, pushing the ten-year yield on the US T-Note towards the 3% level.
And the share of global debt at negative rates has melted in six months, from 14,000 to 2,000 billion dollars.
Bubble deflation
Valuation bubbles then deflated, on unprofitable tech companies, SPACs, cryptocurrencies, “meme stocks” (worthless securities pushed by social networks), etc.
The manager of the Crédit Agricole subsidiary now thinks that most of the rise in interest rates has gone to government bonds, especially in the United States.
A yield close to 3% on the American ten-year once again seems attractive to him, which is less true in the euro zone where the German ten-year yields 1.3%.
Amundi AM’s portfolios were “underweight” at the start of the year on long-term maturities, but have become “more duration neutral”.
Aside from US sovereign paper, managers find “value” in dollar debt