Global Debt Funds Shun Italy on Fears That Euro-Area Is Cracking
- Italian bonds suffer worst year-to-date performance since 2006
- Moody’s is set to review Italy and Greece after Friday’s close
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Italian debt is once again the must-watch bellwether for growing tensions within the euro-area.
Global investors have lasered in on the nation’s bonds because, while they feature tempting yields, the government’s relatively weak finances add to the shared risk across the region. UniCredit SpA estimates foreign asset managers and hedge funds’ exposure to Italian government bonds may be around the lowest since December 2018.