Read and Causer bet on Spanish and Italian bonds

Invesco Perpetual's Paul Causer and Paul Read have allocated almost a quarter of their £398 million Tactical Bond fund to Spanish and Italian bonds in the view the countries are "too big to fail". The fund management executives had an exclusive interview with sister publication Investment Week this morning.

Causer and Read said they are exploiting a “short-term tactical opportunity” by building up a 13.5% position in Italian government bonds and 9.2% in Spanish – taking overall exposure in the