At a presentation on risk management post-financial and economic crises, organised by the Sim Kee Boon Institute for Financial Economics, Philippe Ithurbide, global head of research at Amundi Asset Management, commented that "Japan's bond market is not a safe haven”, and that it is “the most dangerous bond market". He cited an IMF paper indicating the "saturation point" for Japanese government debt will be reached in 10-15 years. “I might be interested (in JGBs) at 4%-6%, but we have the same at home without the forex risk," he said. He noted that Amundi is increasing the portion of Japanese equities in its portfolio. "It's not a question of stopping investment into Japan; it's where to invest," he said.
Related link:
Post-crisis world requires new thinking – Amundi's Ithurbide
SUBSCRIBE TO THE SKBI MAILING LIST*
Be alerted on SKBI news and forthcoming events.
*Please note that upon providing your consent to receive marketing communications from SMU SKBI, you may withdraw your consent, at any point in time, by sending your request to skbi_enquiries [at] smu.edu.sg (subject: Withdrawal%20consent%20to%20receive%20marketing%20communications%20from%20SMU) . Upon receipt of your withdrawal request, you will cease receiving any marketing communications from SMU SKBI, within 30 (thirty) days of such a request.