Fortunes were made playing the convergence trade in Europe (prior to 2008) in which peripheral...

|By:, SA News Editor

Fortunes were made playing the convergence trade in Europe (prior to 2008) in which peripheral bond yields fell to meet core yields. Should fiscal union come to pass, Vince Cignarella proposes the next great convergence trade, only this time yields in the core will rise to meet those on the periphery. The failed German bond auction and subsequent sharp rise in German yields may have been about just that.