Hedge fund strategist had two decisions to make. First, what was the way the core eurozone-term interest rates are likely to be next year? There was a sharp decline in the German long-term rates in the last two years of aberration, soon to be canceled, or was it part of a "new normal", which lasts for some time? Second, as long-term rates would peripherals developed in relation to the prime rate? That is, the difference between long-term rates in similar, Greece, Spain and Ireland, and those in Germany, how they will develop over the next year? There was a dramatic difference in the euro area long-term rates is likely to continue next year, or will see a convergence? He knew that many factors contributed to the long-term interest rates, it will have to use all their tools to address this issue. The certificate does not clear. Some of the factors pointed to a lower rate of German, some to higher, some to expand the euro zone spreads (even the collapse of the euro area, as we know it?), And some to toe. To form an opinion on how the eurozone long rates, it will have to deal with the mounds of information. "Hide
by Francis Warnock, Peter Debaere Source: Darden School of Business 24 pages. Publication Date: February 7, 2011. Prod. #: UV5691-PDF-ENG
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