Europe Correspondent
Soren Vinter reports on European markets from Frankfurt, covering the banks, the bund curve and the politics that move both. Before joining the desk he spent seven years in bank equity research at a Nordic brokerage, where he covered lenders through two capital cycles. He is fluent in the footnotes of a European bank disclosure, which is more useful than it sounds.
Semi-liquid funds have gathered 148bn euros from private wealth channels in four years on monthly dealing terms. Redemption requests hit 3.1 per cent of net assets in August, and the quarterly limit is 5.
Three month cross currency basis has gapped wider and the yen has retraced nine figures in eight sessions. European funds that borrowed cheap yen to buy dollar credit are the marginal seller.
The ten-year gap to Germany has widened 23 basis points since June with no rating action and no failed auction. European long duration is repricing for the same reason American long duration is, and a contested budget is the local excuse.
The advisory fee is the only cost most clients ever see on a statement. Four more sit underneath it, and together they usually exceed the one on the invoice.
Which account a retiree draws from, and in which order, can change the life of a portfolio by a decade. The rule of thumb most people inherit is close to the worst available answer.
The same bond is cheap for one household and expensive for another, and the gap between them is wider than any plausible view on interest rates. Taxable equivalent yield is the only number worth comparing.
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