Friday, December 17, 2010

Portugal May Get Frozen Out by Bond-Sale `Avalanche' in 2011: Euro Credit

Better get out those search dogs, because the avalanche might threaten those higher-rated governments and agencies as well.

Portugal risks being frozen out of the bond markets next year amid a wave of auctions from higher- rated governments and agencies that threaten to force the nation into seeking a bailout to pay its debts.

“It has become the market consensus that Portugal’s ability to fund on a standalone basis is fairly constrained,” said Jamie Stuttard, head of European and U.K. fixed income at London-based Schroders Plc, which has $286 billion under management. “People have investment alternatives.”

Source: bloomberg.com

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