Investors keen to wade deeper into the euro zone’s quieter waters will have 765 billion euros, or just over $1 trillion, worth of fresh government bonds offered to them this year, nearly 8 percent less than in 2012, Deutsche Bank writes in a report.
With the debt crisis quieting down, euro zone assets are among the top 2013 picks for many leading investors, with the likes of Societe Generale and AXA Investment Managers advising to head for the periphery with Spanish and Italian sovereign debt.
Deutsche Bank writes in its Eurozone 2013 supply outlook report, based on the bloc’s ten biggest bond issuers:
Gross issuance of EUR 765bn would be a decline of ~EUR 65bn compared to 2012 despite the fact that the IMF expects Ireland and Portuguese to issue around EUR 10bn more in 2013 compared to 2012.
Compared to 2012, we expect bond issuance to be much lower in Italy (due to lower redemptions) and marginally lower in Spain (offset by increase in bill issuance)