Why the Lack of Risk Taking May Continue
Companies are selling fewer bonds for capital expenditure even as European Central Bank stimulus measures designed to boost the economy spur record issuance, according to Fitch Ratings. Bond sales are soaring as the ECB’s asset-purchase stimulus program has suppressed borrowing costs for companies. Issuers have been reluctant to invest the proceeds into the real economy because uncertainty over the U.K.’s decision to leave the European Union and slow growth are clouding the region’s economic outlook. Goldman Sachs Co-head of Global Macro & Markets Research Francesco Garzarelli discusses with Guy Johnson on "Bloomberg Markets: European Open."