Whatever the outcome of next month’s election, Italy’s bonds should be safe for a while yet.
With a debt of 2.3 trillion euros ($2.8 trillion), or about 132 percent of the country’s yearly output, investors are well aware that Italy’s finances risk coming under pressure every time spreads widen -- a realistic prospect after a vote in March that will prove inconclusive at best. Further down the road, the European Central Bank’s exit from ultra-low rates is set to raise borrowing costs in coming years.