Investors drawn to Iceland’s high yields following the partial dismantling of capital controls are facing parliamentary elections that could produce a toxic mix of political turmoil and radicalism. Klaus Spoeri, a fund manager at Frankfurt-Trust, says that while he recently bought more Icelandic bonds because of their attractive yields of more than 5 percent, he’s now holding off. “We’re quite confident about Iceland and the turnaround,” Spoeri said. But if Saturday’s elections should “go wrong, we’ll liquidate the position.” Despite an impressive turnaround in the economy, latest surveys suggest the ruling conservative coalition of the Independence and Progressive parties stands little chance of surviving the election. An untested alliance of opposition parties has set its sights on the leverages of power. The alliance is spearheaded by the Pirate Party, a direct-democracy movement that’s been leading the polls by riding a global wave of resentment toward the establishment.Full Article: Investors Who Poured Into Iceland Now Face ‘Messy’ Election - Bloomberg.
Oct 25 2016