Germany’s Haven Status Fades as Crisis Bill Mounts: Euro Credit
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The haven status that drove German yields to record lows is fading as the fourth bailout of a euro member stokes investor concern that the currency bloc’s biggest economy will be left picking up a mounting tab.
“If the euro region continues, then there must come a time when there is a fiscal union and burden-sharing, and that would make the market think more deeply about the creditworthiness of Germany,” said Ralf Ahrens, who helps manage about $20 billion as head of fixed income at Frankfurt Trust.