ECB masks risk to euro area corporate debt
Investors too optimistic about effects of monetary stimulus, says mutual fund
Warsaw
INVESTORS are too optimistic about the effects of the European Central Bank's (ECB) monetary stimulus on the single-currency region's corporate Eurobonds, according to Warsaw-based mutual fund Millennium TFI SA.
"The Eurobond market is like a tightly-drawn bowstring," said Radoslaw Plewinski, who helps manage almost 1.3 billion zloty (S$480.6 million) in bonds at Millennium. Corporate Eurobonds haven't taken into account "any of the risks, ranging from an economic crisis in Europe to the difficult talks with Greece", he said.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Biden vetoes bid to repeal US labour board rule on contract, franchise workers
Economic leaders of South Korea, Japan, China say FX volatility is a risk
US automakers win extension on use of Chinese graphite in EV tax credits
US service sector contracts in April; price pressures up
Thaksin’s daughter calls central bank independence an ‘obstacle’
US jobs growth slows in April; jobless rate up to 3.9%