The past month was marked by extreme risk aversion and intense volatility, on the bond markets as well. The breath-taking spread of the coronavirus, in conjunction with the measures taken to contain it, resulted in a sharp correction on the equity markets. While the government bond markets were initially able to profit from this, there was also a significant correction for German Bunds during the second half of the month.
The portfolio’s positioning was more defensive. In order to prevent sales of fund units, the cash ratio was raised to 5%. In return, the share of corporate bonds was lowered to roughly 45%. The duration of the portfolio is at 1 year. The average rating of A+ underlines the conservative positioning.
Due to the correction on the bond markets, the portfolio yield increased to 0.8%. The basic positioning of the portfolio remains unchanged, in light of the relatively illiquid markets. (24.03.2020)
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