Alex Borer

“We believe the correction of risky asset markets in the second half of January to be rather short-lived. Short-term interest rates will of course be raised at some point in time. Contrary to many other investors, we consider this not to become a major issue any time soon. The level of short-term interest rates is extremely low and raising rates would come only with continued economic revival. Given the spectacular performance of convertible bonds – based on collapsing credit spreads and strong equity markets – we reduced the allocation by 2 per cent. We increased the vehicle that follows a buy-write strategy on the S&P 500 to 6 per cent.”