London Event

MFS: “The Market Forgets that When Credit Liquidity Dries Up, There Is No Turning Back”

Date:

MFS: “The Market Forgets that When Credit Liquidity Dries Up, There Is No Turning Back”

Author: Meritxell Sedo

  1. Pilar Gomez-Bravo, Lead Portfolio Manager for MFS Meridian Funds Global Total Return and MFS Meridian Funds Global Opportunistic Bond, shared her vision on global debt markets during the 2017 MFS European Investment Forum in London
  2. “The ECB will try to separate the withdrawal of stimulus from rate hikes in order to avoid a repeat of the Taper Tantrum that occurred in the US back in 2013”
  3. “It‘s possible that the European economy will continue to strengthen and we could see rate increases well before the end of 2018, which is what is currently priced into the market”
  4. “During the last crisis, many investors weren't able to sell their short-duration floating rate bonds positions, and they had to settle for 50 cents on the dollar. Taking on a lot more risk for an extra 30 basis points doesn’t make sense in this environment”