Eurozone polarises: strong get stronger as weak weaken

For peripheral European countries, as the sovereign debt crisis escalated so their investor base became more concentrated, with a rising reliance on domestic banks, which themselves are dangerously dependent on ECB funding. However, as Philip Moore reports, for those sovereigns that have stayed clear of the crisis, demand looks set to grow on the back of coupon repayments and strong redemption flows as well as investors’ preference for safe-haven assets.