ECB masks risk to euro area corporate debt
Investors too optimistic about effects of monetary stimulus, says mutual fund
Add BT as a preferred sourceWarsaw
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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