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German bunds are suggested as a valuable alternative for investors looking to diversify portfolios away from U.S. assets due to geopolitical shifts and a secular trend.

What is Alexandra Ivanova's view on the U.S. economy?

Alexandra Ivanova credits the U.S. economy for its strength and resilience, suggesting that holding both German bunds and U.S. Treasurys makes sense for diversified portfolios.

Are German bunds a safe investment for 2026?

As of early 2026, German bunds are considered a potentially healthy safe asset alternative to U.S. Treasurys, especially with expected increases in issuance.

Home / Business and Economy / German Bonds: The New Safe Haven?

German Bonds: The New Safe Haven?

9 Jan

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Summary

German bunds are seen as a viable alternative to U.S. Treasurys for diversification.
Geopolitical events are increasing investor focus on asset diversification.
German debt levels remain low, presenting a healthy starting point for bunds.

An Invesco fund manager has identified German bunds as a compelling investment alternative to U.S. Treasurys, citing a growing global trend of portfolio diversification. Alexandra Ivanova highlighted the difficulty in finding assets to replace the liquidity of Treasurys, but pointed to German government debt as a primary candidate.

Ivanova suggested that increased issuance in the bund market, while potentially concerning to some, could be beneficial for investors seeking safe assets outside the U.S. She noted that German debt levels are currently low, providing a fundamentally healthy starting point for bunds. This perspective comes amid heightened geopolitical instability and a renewed focus on de-dollarization trends.

While acknowledging the resilience of the U.S. economy, Ivanova advocates for holding both bunds and Treasurys within an investment portfolio. She also mentioned Japan as remaining attractive and the U.K. gilt market's front-end looking promising for potential interest rate cuts.