Tailored, cross-border solutions guide Amundi clients in navigating volatile global economy

Once again at a pivotal turn, the global economy is facing a year of great volatility and caution. Amid an increasingly challenging geopolitical landscape and sharp decline in equity markets and commodity prices, investors are bracing for what could be the next global recession.

"The economic outlook may resemble a worst-case scenario for some investors, but the creation of such divergence and complexities may also generate exceptional opportunities," says Pascal Blanque, chief investment officer and head of institutional and corporate clients of asset management group Amundi. "The key to finding such prospects lies in in-depth research, a long-term vision and a tailored approach specific to the target markets."

Amundi is maintaining its long positions on government bonds in the fixed income market to continue offsetting the exchange rate effect brought by the corporate bonds markets to divergences and opportunities between zones, countries, segments, sectors and issuers.

The group also expects the upsurge in volatility to create the conditions for a rebound in rates for a limited amount of time, although the interest rates and bond yields increases should not last. Taking into account the current and future monetary policies and the present deflationary pressures, the group also started building long positions on emerging market debt - particularly debt in hard currency.

In the equity markets, the group will also continue with its general direction on exposure to domestic demand, highlighting decoupling or at least maturity differences between the United States, Japan and the euro zone; capitalising on the low interest rate environment, which favours dividends and share buybacks in particular; and focusing on opportunities that are either overlooked or undervalued.