Draghi Bond  Rally Fails
World Economy

Draghi Bond Rally Fails

Europe’s biggest corporate-bond rally in more than three years is already sputtering. Bloomberg reported. Returns from investment-grade corporate bonds in euros have slowed to 0.4% in April, the lowest this year, based on Bank of America Merrill Lynch index data. That’s down from 1.6% in March, the best month since July 2012, when prices surged following the European Central Bank’s announcement that it will start buying non-bank corporate debt. The slowdown suggests lower yields are encouraging investors to turn to other assets, such as overseas debt and junk bonds. That may support ECB President Mario Draghi’s efforts to encourage investment as he seeks to drive up inflation and economic growth. “The ECB wants investors to take more risks,” said Craig Veysey, head of fixed income for the private wealth arm of Sanlam Group, which manages about £40 billion ($58 billion) of assets. “It has squeezed returns out of the areas where it is expected to make purchases.”


Short URL : http://goo.gl/xxlq15
  1. http://goo.gl/QJWnj3
  • http://goo.gl/RZfkuI
  • http://goo.gl/YDLDuq
  • http://goo.gl/hSYU5J
  • http://goo.gl/hNVJ1C

You can also read ...

Big Data, Online Markets Can Lead to Higher Prices
Information technology is not just transforming markets; it is...
Italy could set the stage for the bloc’s next crisis if it delivers on its tax-cutting and high-spending policies.
Capital investment in 24 of the EU’s 28 member states has...
Air India Sale Hangs in Balance
Uncertainty hangs over the Indian government's plans to sell...
Liu He (L) and Steven Mnuchin after the joint statement to avoid a trade war.
With "minutes to midnight", the great US-China trade war...
Bangla Trade Deficit Doubles
Bangladesh’s trade deficit has almost doubled within 12 months...
A meeting of eurozone finance ministers is set for June 21.
Greece’s creditors have agreed a program of reforms as the...
Cumulative gross financing needs could amount  to $69.3 billion for 2018 for the six-nation group.
While public debt levels remain at manageable levels for most...
Egypt Gets Bids for Power Plant
Egypt next week will announce the winning consortium to build...