European Debt Assets Offer Value, Marathon’s Richards Says
This article is for subscribers only.
Global funds managers see value in debt securities of European nations as measures by the region’s leaders and central bank have cut risk amid signs of continued economic weakness in the region.
Yields on the 17-nation euro-area’s most indebted nations, including Spain and Italy, have fallen since the European Central Bank unveiled its Outright Monetary Transactions bond-buying plan, known as the OMT, in September, pledging to spend as much as needed to restore confidence in government bond markets. While the central bank’s offering of loans beginning in December to banks through its long-term refinancing operations, or LTROs, has helped provide liquidity to the banking system.