German Elections: How Did Fixed-Income Managers React to Germany's Election Outcome?
German Elections: How Did Fixed-Income Managers React to Germany's Election Outcome?
Analyzing Germany's 2025 election, market reactions, economic challenges, and fixed-income manager strategies.
The Christian Democratic Union/Christian Social Union (CDU/CSU), led by Friedrich Merz, won the election, positioning him as Germany’s likely next chancellor. A coalition with the Social Democratic Party (SPD) appears most probable, with negotiations underway and a new government expected by late April. However, the coalition's lack of a two-thirds majority raises uncertainty about potential fiscal spending increases through debt brake reform.
The market reacted to the election outcome in a benign way, as the new coalition is expected to implement business-friendly reforms and provide some form of fiscal spending.
Download the report to see how fixed-income managers changed their positioning in response to the German election outcome.
Inside you will find:
Inside you will find:
A breakdown of the election outcome and potential coalition scenarios
Germany’s Economic Challenges and Market Hopes for Potential Solutions
The positioning of fixed-income managers after the election results