Pictet says it ended bets Irish bonds will fall versus Germany
Pictet Asset Management ended bets that Irish bonds will decline relative to Germany at the end of August after the so-called yield spread widened to a record.
“At the very end of August we closed our short position in Ireland,” Mickael Benhaim, who oversees $60bn of fixed-income investments at Pictet in Geneva, said in a telephone interview yesterday.
“We’ve had a big correction and a tremendous widening of the Irish spread against Germany and we decided to take our profits and are more-or-less neutral.”
Pictet no longer holds any Greek bonds, because they fell out of the benchmarks it manages when Greece’s debt was downgraded to junk earlier this year, Benhaim said.