Vanguard Warns France Is a 'Degrading Credit' - European Business Magazine

On Wednesday, 30 September, Vanguard told the Financial Times that France is likely to face even higher borrowing costs as its credit keeps deteriorating. Ales Koutny, Vanguard’s head of international rates, called France a “long-term degrading credit”. He warned that demand in debt markets can disappear once a country becomes the centre of stress. France’s 10-year borrowing cost has risen from 3.2% to above 4.8% since the Iran war began, the biggest jump in the G7. When one of the world’s largest bond buyers says that about the eurozone’s second-largest economy, other investors listen. This is now Europe’s problem, not just France’s. France has taken Italy’s old role as the eurozone’s biggest source of bond-market anxiety.