The euro area's fiscal crises are reshaping bond markets in Europe, with peripheral countries like Spain, Greece, and Portugal gaining investor attention. JPMorgan Asset Management and Neuberger Berman are increasing their exposure to Spanish debt, while Goldman Sachs and Societe Generale predict positive performance for parts of Europe's peripheral governments. The shift is driven by the changing fiscal landscape, with peripheral economies outperforming core nations. Moody's and S&P Global Ratings have upgraded Portugal and Greece, improving Italy's credit outlook. While peripheral bonds remain at risk, investors see opportunities for exposure to Spanish, Greek, and Portuguese debt markets.

Europe Bond Markets Shift