CORPORATE FINANCE

Bunds Lose Some Standing as Haven

Bunds Lose Some Standing as Haven

Answer No. 1

From the article by Matt Phillips, it is observed that the biggest names in the bond market have started cutting back their investment or holdings from the German government debt. The reason why the bond holders are uncertain and hesitant is that there is possibility of European debt crisis to affect the German bond market. Moreover, there is also a concern for the biggest bond holders is that there is uncertainty that if the European crisis increases then should Germany keep on providing shelter to the bond ...