All the European Central Bank’s bond-buying efforts and cheap loans might not be a match for a wave of company defaults.
Italy’s bond yield premium over Germany reached its tightest since March last week, buoyed by more than 2.6 trillion euros ($2.9 trillion) of ECB easing. Yet Rome’s borrowing costs could blow out if more companies fail to repay debts, said Patrick Perret-Green, head of research and strategy at AdMacro Ltd.
