All eyes on Italy before crucial S&P review
The public sector bond market is braced for S&P’s review of Italy’s credit rating this Friday. Investor analysts said a downgrade would result in a “material widening” of BTPs if the sovereign fell to just one notch above investment grade.
“This is owing to the reduced margin such a move would entail in terms of protecting investors from Italy potentially… falling out of investment grade benchmark indices,” the analyst said.
Italy’s growing budget deficit has led market participants to fear a downgrade could be on the horizon.In ...
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