GVC Gaesco dismisses possibility of sovereign debt crisis

GVC Gaesco has ruled out the possibility of a sovereign debt crisis similar to the one experienced in 2011. During the presentation of its investment strategy for the fourth quarter of 2026, investment fund manager Alberto Iglesias stated that the firm does not foresee a crisis that could negatively impact its portfolios.

Iglesias noted that following years of low interest rates since the subprime mortgage crisis, the concept of positive rates has become unfamiliar. He suggested that if interest rates continue to rise and countries face higher financing costs, central banks possess the tools to intervene, such as purchasing long-term debt to maintain low yields and curves.

Regarding market opportunities, GVC Gaesco views the fixed-income sector favorably, though it recommends a prudent approach to duration, specifically between two and five years. The firm's strategy prioritizes sovereign debt over corporate credit and expresses a preference for investment-grade issuances over high-yield options.