Spare Cash Spurs Record Demand for Debt as Funds Vie With ECB
- Exponential growth in orderbooks a theme of 2020 for Rabobank
- Next week, supply to be mopped up by redemptions; ECB in focus
Photographer: Hannelore Foerster/Bloomberg
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There’s so much cash in Europe there are just not enough bonds to go around.
The amount of spare liquidity in the euro-area economy hit an all-time high of 3.2 trillion euros ($3.8 trillion) this month and plenty of that is chasing any new debt issue. This was seen in the record 233 billion euros of orders for the European Union’s debut social bonds.