Alex Borer

“Equity markets performed strongly in the first months of 2012. A number of positive developments including the restructuring of Greek sovereign debt, positive surprises of US macro numbers and aggressive and creative monetary policy in the major countries paved the way. The managed US treasury yield curve encourages investors to stay long duration because of its steepness. Although the level of the yield curve is very low compared to history, “roll down the yield curve mathematics” is able to produce attractive bond returns. We have sold our Japanese equity position after a strong run and keep the cash.”