Published On: Mon, Feb 23rd, 2015

Julius Baer Analyst Markus Allenspach Says Euro Bonds Distorted, Not Worried about Greece

REITs and dollar-denominated bonds are preferable to European bonds

Markus Allenspach

Julius Baer, a private Swiss bank, is staying away from European bonds, prefers investing in REITs, and isn’t overly concerned about the prospect of Greece leaving the European Union, according to

When it comes to bonds, Markus Allenspach, head of fixed income research at Julius Baer, prefers dollar-denominated bonds and corporate bonds to European bonds. He said the euro bond market is “distorted.” He is not concerned about Greece leaving the Eurozone, and told “After the meeting is before the meeting’ remains the theme in the euro area. Greece and the rest of the eurozone members time and again walk out of the ‘last’ negotiations only to meet again some days later.” Allenspach thinks a compromise can be found at the last minute before the deadline on February 28. If not then, in March or April, when Greece is likely to run out of money.

Real estate investment trusts (REITs) in Europe have increased dramatically in value so far in 2015, and have seen a 17% rise through February 13. As bond yields fall, investors are looking for higher-risk investments such as REITs. Also, anticipation of quantative easing in Europe has also increased demand for REITs. Julius Baer doubled its recommendation for REITS in euro-denominated portfolios to 6%. According to, Roger Degen, an analyst said, “If you are in the right place and property classes, then fundamentally, yes, it’s a very interesting sector.”


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