Bloomberg reported that “Europe’s 20.3 trillion-euro ($26.1 trillion) bond market is shrinking as financial institutions repay debt, according to Citigroup Inc. analysts in London.
Banks and other financial institutions reduced issuance by 560 billion euros to 4.7 trillion euros in the five quarters to March 31 this year, strategists Hans Lorenzen and Alessandro Tentori wrote in a report today. In absolute terms, the market declined by 30 billion euros in the year through March, a signal it’s stagnant, according to Lorenzen, based on data compiled by the European Central Bank.”
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