FYI: The U.K.’s biggest bond mutual fund is shifting money to the other side of the Atlantic as the interest-rate gap between Europe and the U.S. widens to record levels.
M&G Limited has boosted U.S. holdings in its 23.4 billion pound ($32 billion) Optimal Income Fund this year to more than a third at the expense of positions in French, Italian and Spanish bonds. To cushion inflation risks and the impact of rising U.S. rates, it’s gorging on short-term Treasury bills and paring credit risk.
Regards,
Ted
https://www.bloomberg.com/news/articles/2018-05-14/british-fund-with-32-billion-makes-big-lurch-into-treasuries
