"The issues, especially with Portugal and Ireland, too much debt, high funding costs, deficits are too big and you have to take on structural reform," Albrycht said.
"The yields over in Portugal and Ireland, which are definitely unsustainable and unstable. Portugal right now local yields 6.5 to 8 percent, Ireland 9.5 to 10.5 percent. On the CDS [credit default swap] front you're talking Portugal mid-fives, you're talking in Ireland mid-sixes, so very unsustainable," Albrychts added.
Portugal’s Parliament in Lisbon will vote on Wednesday on a controversial fourth Stability and Growth Program.
People are betting that Germany will step up," he went on to say. "People have faith in Germany and that Germany will be the backstop. Their ladden with the paper of the PIIG countries, 50 percent of their trade occurs with the European Union."
Domestically, Albrycht's approach is to have a diversified portfolio—mortgages, structured vechiles, asset back securities and commercial real estate, which give quality investment, but also give a yield advantage over equivalent Treasuries.
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