“European inflation expectations are rising as investors anticipate ongoing easy monetary policy and a global economic rebound boosted by U.S. fiscal spending.” – by Anna Hirtenstein
Bonds
Italy Government on Verge of Collapse as Renzi Party Quits (Bloomberg)
“Italy’s government led by Prime Minister Giuseppe Conte risks collapsing in the middle of the Covid-19 pandemic after a junior coalition partner pulled out.” – by Chiara Albanese and John Follain
Who Wants to Give Italy a Free Loan? (The Bulwark)
“With global financial markets awash in cheap credit, Italy is issuing zero-interest bonds and hoping that it can somehow avoid fiscal calamity.” – by Desmond Lachman
Central Banks Pile Into Europe’s Common Debt (WSJ)
“Central banks were among the biggest buyers of European common debt this week, signaling growing trust that the euro will hold its own through the pandemic.” – by Anna Hirtenstein
H2O Asset Management: Illiquid Love (FT)
“To those who have followed the firm’s investment strategy closely, Bruno Crastes’s relationship with Lars Windhorst is certainly no secret either. For years, H2O Asset Management has been a notable financial supporter of Mr Windhorst’s fundraising efforts. This included investments in his ill-fated €1bn Sapinda Invest bond which failed to pay its scheduled coupons on […]