With the uncertain outlook for the European economy and the way Central Banks will act, there will likely be periods of weakness in the markets going forward as uncertainty about inflation, the growth prospect of the Eurozone economy and the impact of higher interest rates remains.
Egbert Bronsema, senior investment manager in the alternative fixed income team at Aegon Asset Management, explains why high-carry products with low interest rate sensitivity, like European ABS, offer investors a good investment opportunity in the current environment.
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