Europe’s Missing Safe Asset: Eurobonds And The Internationalisation Of The Euro

The dollar's retreat is creating the most compelling window for euro internationalisation since Maastricht, but Europe is missing the one instrument that would make it real. In this report, we make the case for the Eurobond, assess which model is most likely to prevail, and explain why the trade is long euro on dips and overweight Central and Eastern European sovereign spreads.