An Australian Fund Once Again Buys Tricolored Bonds, Goldman Sachs Considers the Spread of Interest Rates Between France and Germany "Excessive": Is Market Pressure on French Debt Exaggerated?
6 Articles
6 Articles
While market confidence in France's financial sustainability is crumbling, some investors choose to buy bonds and consider the rise in risk indicators excessive.
Despite criticisms and warnings about France's deficit and debt, an Australian fund, the Australian Retirement Trust, has decided to buy French bonds. He considers the current pressures "excessive".
When asked by Bloomberg, Australia's second largest fund buys French debt, judging investors' expectations of the country's fiscal situation and the extent of potential future ECB rate increases "excessive".
Australia's second-largest pension fund is buying French government bonds because it believes the market is overestimating France's budget problems and expectations of an ECB interest rate hike, while other investors are fleeing French government debt, Bloomberg reported.
Opportunism is also visible among investors, writes Antti Lehmusvirta.
The ECB cannot support highly indebted France without Paris changing economic policy, but there are ways to prevent a euro crisis
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