Italy

European bond and stock markets saw a sharp sell-off on Monday after a shock result from the Italian election, where no political group managed to win a majority vote.

COMMENT

Leading fixed income managers have been adding exposure to peripheral eurozone bonds as value dries up in the investment grade corporate space.

The SWIP Absolute Return Bond fund received a significant boost in Q4 from exposure to the European periphery, such as Italy and Spain.

M&G's Mike Riddell has sold out of his position in 5- and 7-year Italian government bonds ahead of a possible sell-off following the country's general election.

The decision by Mario Monti to stand down as Italian Prime Minister earlier than planned has caused markets to fall across Europe today, and led to a spike in Italian bond yields.

7IM's Alex Scott has begun switching out of corporate debt in favour of Spanish and Italian bonds on a large proportion of the group's funds, ahead of any rise in government bond yields.

Tim Drayson, economist at Legal & General Investment Management, reviews the recent pledges of the world's largest central banks and their potential impact on the "great muddling through"

Fidelity's Ian Spreadbury has snapped up some Italian and Spanish sovereign debt, as well as corporates in both regions, to provide his funds with some extra yield.

France's economy is looking increasingly troubled and it could be the next eurozone domino to fall, investors at Legal & General Investments and Carmignac Gestion have warned.