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Our opinion on markets 
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03/09/2010 Opportunities are still to be had in sovereign debt. A high risk premium is associated with Greek peripheral country sovereign debt whereas UFG-LFP remains confident in their ability to reimburse. Consider LFP Euro Sovereigns (19.49% as of 19/02/2010, of portfolio invested in Greek debt).
Emerging countries benefiting from investment grade Moody’s ratings identical to those of certain US corporates offer higher spreads (278 bp for the JPMorgan EMBIGD index at 08/03/2010 - external sovereign debt in dollars – versus 160 bp for a corporate US investment grade Merrill Lynch index at 08/03/2010). Consider investing in LFP Emerging Bonds to capture market opportunities.
Prior to new legislation which should re-class subordinated debt, decreasing the associated risk premium, consider LFP Libroblig and LFP Sub Debt (French and Italian markets focus).
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03/09/2010
Short-term interest rates remain low. For those who think it’s time to consider a change and anticipate an increase in rates: LFP Protectaux. We believe that arbitrage strategies are gaining interest, especially in a market with no significant trends. Maybe consider UFG Alteram Multi-Arbitrages. |
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03/09/2010
LFP Convertibles 2010 is arriving at maturity and performs more as a money market fund that as a convertible bond fund. Reconsider your position.
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