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Can EU bonds rival the German bund?
The EU has become a major player in international debt markets as a steady issuer of safe assets — an advent that’s been seen as a watershed moment for the euro area, according to Goldman Sachs Research. But while the bloc has successfully scaled up as an issuer, EU bonds trail those of France and Germany’s bund in some respects despite the EU’s top AAA credit rating. Compared to the U.S., the market for euro-denominated safe assets is relatively small and fragmented. That began to change as the union issued bonds to fund programs to help member states recover from the Covid pandemic. The European ... (full story)