`Unpredictable' Italian Bonds Prompt Warburg to Reduce Holdings
- Money manager is now underweight Italian debt: Schubert
- Holds neutral-weighted positions in Spanish, Portuguese bonds
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It’s an old adage that markets don’t like uncertainty, and that’s driven one German money manager away from Italian bonds.
Warburg Invest KAG mbH, which oversees about 8.9 billion euros ($10.3 billion) has reduced its holdings in Italy’s government debt in recent weeks and is underweight the securities, according to Hamburg-based money manager Andreas Schubert. With politics the dominant driver in the market, investing in Italian government bonds is currently unpredictable, he said.