Saxo Group Videos

Fasdal: How to trade this Greek uncertainty

The market is really heating up, says Saxo's Head of Fixed Income, Simon Fasdal. He's referring to the continuing uncertainty over Greece and the deadlock between it and its creditors. Greek three-year government bond yields are now trading above 28%, while 10-year yields are above 13%. But Fasdal reminds us that back in 2012, the 10-year yields were up at 35%.

Despite the ongoing concern, Simon says the market is almost ignoring the risk of contagion. He says that's partly because there hasn't been much headline risk. He also believes that QE is having a deep impact in both European equities and bonds with the market already looking beyond Greece.

So how best to trade this uncertainty? Simon admits it's a difficult call at the moment but says he still favours going long bunds in the short-term as a cheap insurance against any big sell-off in equities. Longer term he's looking at being long European equities, once Greek risk has disappeared.

02:40 minutes
Tags: bond, bond buy, bond buying, bond buying programme, bond investing, bond investment, bond investments, bond investor, bond investors, bond market, bond markets, bond portfolio, bond portfolios, bond purchase, bond purchases, bond strategy, bond yield, bond yield rate, bond yields, bond-buying programme, bond-buying purchasing, bondbuying, bondmarket, bonds, bonds and equties, bonds hedge, bonds hedging, bonds market, bonds to equities, bonds update, bonds v equities, bonds v stocks, ecb, ecb news, equities, equities trading, equity, equity index, equity market, equity markets, equity portfolio, equity portfolios, equity risk premium, equity strategy, equity trading, eur, euro, euro area, euro dollar, euro zone, europe, european, european banks, european central bank, european economy, european union, eurozone, eurozone economy, eurozone recovery, fixed income, fixed income bonds, fixed income corporates, fixed income portfolio, fixed income v equities, greece, greece bailout, greece collateral, greece crisis, greece debt, greece debt crisis, greece european union, greece exit, greece germany, greece money, greek, greek bailout, greek bonds, greek crisis, greek debt, greek economy, greek finance minister, greek finances, greek negotiations, greek prime minister, greek talks, greekdebt, green investments, greexit, grexit, negative, negative yield, saxo, saxo bank, saxo tv, saxotv, trader, trading, tradingfloor.com, yield, yield levels, yield search, yield spread, yields, yields levels

Switch to