Investors warm to European debt after rates turn positive - funding officials
Reuters
Published Oct 25, 2022 05:40AM ET
(Reuters) - Investors that were previously put off by negative interest rates in Europe in recent years are starting to return to market, funding officials for the European Investment Bank and European Commission said on Thursday.
"It's true that the number of central banks who could not buy negative rates because their mandates would not allow them to, they're starting to come back and make an apperance. It's also true that the number of non-European investors who shied away... they're starting to come back," said Sandeep Dhawan, head of benchmark funding at the European Investment Bank, adding that pension funds and insurers are acting similarly.
However, appetite for European debt is only in the early stages and hasn't changed the composition of investor demand for the EIB's debt sales, Dhawan told a seminar in Luxembourg.
Christian Engelen, who heads the borrowing and lending unit for the European Commission's budget department, said the European Union is also seeing increased interest from investors outside the euro zone.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.