Free Trial

Global Investor Magazine Copying and distributing are prohibited without permission of the publisher

Euro mutual funds drive credit markets

11 May 2011

Mutual funds become a driving force in credit markets as they represent a greater proportion of daily market activity

Read more: Fitch Ratings mutual funds

European mutual funds are increasingly driving short-term volatility in credit markets, according to a Fitch Ratings report.

Mutual funds have increased their investments in credit assets to approximately Eu1trillion ($1.5 trillion) at the end of 2010. Although European insurance companies hold around double the amount of private debt assets, mutual funds have become a driving force in credit markets, as they represent a much greater proportion of daily market activity. However, insurers' decisions will continue to...