The only way is UP

Institutional investors in Germany have been absent from the stock market lately due to consistent losses and high volatility. The motivation for this apparent lack of risk tolerance among long-term investors is rooted in the well-known difficult regulatory and economic environment of a majority of market participants. On the other hand yield hungry liability managers cannot live with the meagre yield levels offered in the government bond market in order to cover liability commitments accumulated during the last higher rate cycle. For this reason investors have started to turn to lower...