German fund managers see 'E-bond' issue this year: poll
More than half of German money managers expect jointly-guaranteed eurozone bonds to be launched this year, though they do not approve of the mooted instruments, a new study has found.
The Frankfurt based Center for Financial Studies at Goethe University found that 55 percent of bank, insurance and investment fund managers surveyed felt that "E-bonds" guaranteed by its strongest members would be introduced in 2011.
But 80 percent of the managers from some 500 companies said they were against the idea, which was floated by the head of the eurozone finance ministers, Jean-Claude Juncker of Luxembourg.
Germany has also expressed opposition to such a plan, because it would raise the cost of borrowing for Berlin to cover risks posed by eurozone partners with weaker finances.
In response to a related question in the survey released Monday, 70 percent of the managers said they would approve a so-called haircut or discounted value on risky bonds issued by heavily-indebted eurozone governments.
Finally, half of those polled said that the European Central Bank's reaction to the financial crisis and unconventional measures it has taken in response have put the ECB's independence at risk.
© 2011 AFP