Spreadbury shorts bunds in anticipation of eurobond

Fidelity's Ian Spreadbury has said he is short German interest rate risk in the view that the eventual move towards a 'eurobond' solution will cause yields to rise.

Spreadbury, manager of the Fidelity Strategic Bond and Money Builder Income funds (pictured), expects the eurozone to move towards the issuance of debt backed by all member states over the long term. "I am short German interest rate risk in terms of my overall duration. Yields are down at very low levels which I think is a temporary phenomenon," explained Spreadbury. "I think the odds are in favour of the euro hanging together and policymakers implementing a eurobond, it may take a while for this to happen but eventually Germany will recognise its in their best interests to pick up t...