After two years of market disappointment following each summit of eurozone leaders, Frederic Janbon feels the meeting on June 29 this year broke the mould in acknowledging the risk of outright euro disintegration while launching concrete steps to prevent it. As the head of fixed income at the eurozone’s largest bank by capital and assets, where he has worked for almost quarter of a century, he is as close to the heart of these issues as anyone.
“There will continue to be debate over further European integration versus maintaining the status quo. However, we are breaking away from the usual cycle of half-hearted policy responses to market tensions, short-term market stabilisation leading to policy complacency which, in turn, leads to renewed market tensions. This is creating more investor appetite for high beta, including emerging markets, high-yield and hybrid bonds,” says Mr Janbon.
