EFSF struggle pushes flexible funding agenda

The European Financial Stability Facility (EFSF) is poised to add the flexibility of short term money market issuance to its arsenal in December after it limped across the line with a €3bn 10 year bond for Ireland on Monday. As Italian bond yields took another pasting, the EFSF admitted its plan to use leverage to provide guarantees on sovereign debt a less potent weapon than it had envisaged.