Investors losing money on Europe power bonds

London

INVESTORS who bought utility bonds in euros haven't had it this bad for more than a decade.

Returns are falling amid an energy price slump that's squeezing utilities' earnings and cutting cash flow available to repay debt, while energy efficiency and muted economic growth are damping demand for electricity and natural gas. To make matters worse, bond returns across Europe are suffering as European Central Bank efforts to stimulate the economy pushed borrowing costs to record lows.