Preventing slowdown in Europe
Prices of the iShares Euro Government Bond Capped 5.5-10.5yr UCITS ETF (DE) . Monetary policy Announcements of ECB and geopolitical risk continue to support a positive valuation of European Government Bonds. Risk Premium of the Ishares Euro Gov Bond ETF, measured as its VaR-95% (1 month horizon), is as low as 1,82% (Source: Raise Partner , BNP Paribas - Cortal Consors ). United States is pressing Europe to act one step further. From Secretary Lew’s recent speech : “In short, status quo policies in Europe have not achieved our common G-20 objective of strong, sustainable, and balanced growth. The ECB has taken forceful steps to support the economy through accommodative monetary policy. But as recent economic performance suggests, this alone has not proven sufficient to restore healthy growth. Resolute action by national authorities and other European bodies is needed to reduce the risk that the region could fall into a...