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SIX Swiss Exchange: European Bonds In A Low Interest Rate Environment

Date 29/09/2016

A guest contribution by the ETF provider SPDR analyzes the European Bond market in the current environment of extremely low interest rates.

Antoine Lesné, Head of EMEA ETF Strategy & Research, State Street Global Advisors, SPDR, describes in his guest contribution "European Bonds: Realigning Your Investment Strategy to Offset Negative Interest Rates"[PDF] the effects that transformations in the European bond market might have on investor confidence and requirements. For example, investors looking for alternatives to government bonds that offer a more interesting medium term risk-yield profile might want to extend the maturity profile of their portfolios.

Furthermore, Antoine Lesné indicates how investors could free up cash via reallocations, which could then be used for investment in other fixed income strategies or segments. Meanwhile, the author also points out how the foreign exchange risk carried with an international diversification could be effectively managed with with Currency hedged ETFs.

Indexing pioneer

Offered by State Street Global Advisors, SPDR ETFs provide investors with the flexibility to select investments that are precisely aligned to their investment strategy. Recognised as an industry pioneer, State Street Global Advisors created the first ETF in 1993. SSGA manages more than USD 427.3bn in ETFs worldwide and has over 35 years of indexing experience. Currently there are 90 SPDR ETFs listed on SIX Swiss Exchange. Current quotes are available on ourwebsite.

Pursuit is also a strategy

Are you looking for a simple way to participate in the performance of entire markets? With passive ETFs listed on SIX Swiss Exchange you are certainly on the right track. SIX Swiss Exchange were one of the first European exchanges to launch its ETF segment and have been providing liquid and transparent trading for over 15 years. Find out more.