Erste Asset Management

For 3 day win streak – Update from the Investment Division

For 3 day win streak – Update from the Investment Division
For 3 day win streak – Update from the Investment Division
(c) APA-picturedesk
Share post:

What has occurred since yesterday ?

Global equity markets closed yesterday the third day in a row with strong gains. The US leading equity index increased by 6,2%. The European exchanges could see gains of 1% to 3%.

The credit risk margins für High Yield Corporate Bonds decreased again considerably. Also on the markets where the banks are refinancing themselves the risk margins decreased considerably over the last days.

That is due to the interventions of the Central banks and their liquidity programs. Gold an investment grade government bonds (e.g. 10Y US-Treasuries and German Bunds) were relatively unchanged compared to the day before.

What will we pay attention to over the next days and weeks?

As reported several times already: Last month will enter into the history books. Yesterday there was another entry added. A weekly figure every economist, fund manager and trader pays attention to are the US initial jobless claims.

They are generally getting published every Thursday. So far the highest weekly increase happened on 2 October 1982 and it was 695.000. The last time with a stronger increase was 2008/2009 during the financial crisis. Due to the containment measures against the virus in the USA many businesses and corporations have closed. The number of US initial jobless claims has reached the record high of 3.283.000.

Initial claims for unemployment benefit

Source: St. Louise Fed und U.S. Employment and Training Administration

Why did the markets for risky assets then react positively?

On the one hand it could have been even worse. Some market participants were afraid of five million additional unemployed persons in the USA.

On the other hand the fast implementation of fiscal and monetary policy measures was the second important factor. As an example California: The standard unemployment benefit is ca. USD 450 per week. Based on the support package the was passed the day before yesterday in the Senate over the next four months this benefit will be increased by USD 600 per week.

That means that an unemployed person over the next four months will get benefits of ca. USD 4.200 per month. That is only part of the USD 2.000 billion package of the US government, which is supposed to protect the economy over the next weeks and months from the impact of the Covid-19 virus.

From today’s point of view these support measures are definitely necessary. Since yesterday the USA are the country with the highest number of Covid-19 infections. In total there are more than 85.000 infected persons in the USA. Also Italy saw a strong increase of newly infected yesterday and has currently 80.539 cases.

Our dossier on coronavirus with analyses:


Legal note:
Prognoses are no reliable indicator for future performance.



Legal disclaimer

This document is an advertisement. Unless indicated otherwise, source: Erste Asset Management GmbH. The language of communication of the sales offices is German and the languages of communication of the Management Company also include English.

The prospectus for UCITS funds (including any amendments) is prepared and published in accordance with the provisions of the InvFG 2011 as amended. Information for Investors pursuant to § 21 AIFMG is prepared for the alternative investment funds (AIF) administered by Erste Asset Management GmbH pursuant to the provisions of the AIFMG in conjunction with the InvFG 2011.

The currently valid versions of the prospectus, the Information for Investors pursuant to § 21 AIFMG, and the key information document can be found on the website under “Mandatory publications” and can be obtained free of charge by interested investors at the offices of the Management Company and at the offices of the depositary bank. The exact date of the most recent publication of the prospectus, the languages in which the key information document is available, and any other locations where the documents can be obtained are indicated on the website A summary of the investor rights is available in German and English on the website and can also be obtained from the Management Company.

The Management Company can decide to suspend the provisions it has taken for the sale of unit certificates in other countries in accordance with the regulatory requirements.

Note: You are about to purchase a product that may be difficult to understand. We recommend that you read the indicated fund documents before making an investment decision. In addition to the locations listed above, you can obtain these documents free of charge at the offices of the referring Sparkassen bank and the offices of Erste Bank der oesterreichischen Sparkassen AG. You can also access these documents electronically at

N.B.: The performance scenarios listed in the key information document are based on a calculation method that is specified in an EU regulation. The future market development cannot be accurately predicted. The depicted performance scenarios merely present potential earnings, but are based on the earnings in the recent past. The actual earnings may be lower than indicated. Our analyses and conclusions are general in nature and do not take into account the individual characteristics of our investors in terms of earnings, taxation, experience and knowledge, investment objective, financial position, capacity for loss, and risk tolerance.

Please note: Past performance is not a reliable indicator of the future performance of a fund. Investments in securities entail risks in addition to the opportunities presented here. The value of units and their earnings can rise and fall. Changes in exchange rates can also have a positive or negative effect on the value of an investment. For this reason, you may receive less than your originally invested amount when you redeem your units. Persons who are interested in purchasing units in investment funds are advised to read the current fund prospectus(es) and the Information for Investors pursuant to § 21 AIFMG, especially the risk notices they contain, before making an investment decision. If the fund currency is different than the investor’s home currency, changes in the relevant exchange rate can positively or negatively influence the value of the investment and the amount of the costs associated with the fund in the home currency.

We are not permitted to directly or indirectly offer, sell, transfer, or deliver this financial product to natural or legal persons whose place of residence or domicile is located in a country where this is legally prohibited. In this case, we may not provide any product information, either.

Please consult the corresponding information in the fund prospectus and the Information for Investors pursuant to § 21 AIFMG for restrictions on the sale of the fund to American or Russian citizens.

It is expressly noted that this communication does not provide any investment recommendations, but only expresses our current market assessment. Thus, this communication is not a substitute for investment advice, does not take into account the legal regulations aimed at promoting the independence of financial analyses, and is not subject to a prohibition on trading following the distribution of financial analyses.

This document does not represent a sales activity of the Management Company and therefore may not be construed as an offer for the purchase or sale of financial or investment instruments.

Erste Asset Management GmbH is affiliated with the referring Sparkassen banks and Erste Bank.

Please also read the “Information about us and our securities services” published by your bank.

Subject to misprints and errors.

Leave a comment Required fields are marked with *

Your email address will not be published. Required fields are marked *