Germany

Interest rate volatility is very low across developed market fixed income. Investors should maximize the carry in their portfolios to outperform in a low rate vol environment.

Germany’s economy is regaining momentum after nearly two years of recession. Despite the ongoing cyclical rebound and fiscal stimulus, political gridlock and deep-seated structural challenges threaten to limit the country’s long-term growth potential. Investors should be underweight German Bunds and favor Eurozone equities over German equities.