Emerging concerns about the Delta variant, which has become dominant in Britain with cases leaping to the top since January, are partly undermining investor beliefs about the strength of the economic recovery, as witnessed by the rapid decline in US Treasury yields. at 10 years. This has created significant volatility in the markets, which according to Mark Conrad, Algebris portfolio manager, is normal after a period of sustained strength following the numerous vaccinations made and the recovery of the economies. While the increase in infections is worrying, in the case of the United Kingdom, where the infected have increased the most, hospitalizations remain very low. In addition, studies conducted in the UK, Canada and Singapore indicate that Pfizer, Moderna and Astra Zeneca vaccines are over 90% effective against the most severely affected. “As a result, we believe the Delta variant will not derail reopenings and that the current volatility represents an opportunity for investors. We have added high quality stocks, for which the recent decline does not reflect the strong underlying fundamentals, ”concludes Conrad.