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.
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