PIIGS still a concern for Euro credit markets in 2011: Snowden

PIIGS STILL A CONCERN FOR EURO CREDIT

OMAM's Stephen Snowden says credit continues to look attractive despite persistent concerns surrounding peripheral Europe.

The dominant theme within the European credit market currently is the resurgence of fears concerning the solvency of peripheral European sovereign states, in particular Portugal, Ireland, Italy, Greece and Spain. These PIIGS nations have given markets cause for panic throughout 2010 and we do not expect this to change in 2011. The most recent chapter started with a research report published by Standard & Poor’s in September suggesting that the cost of recapitalising Anglo Irish Bank could be as high €35bn, rather than the €22bn that the government was suggesting at the time.  While bi...