I’m wondering why this would be considered needed when you can just buy an ETF that has all euro country debt in it.
The US sells municipal bonds (state and city debt). There’s no need for joint state debt UNLESS there’s some kind of cross state project.
I could very easily buy 30% German, 60% French bonds if I wanted to.
Though is spirit I get your idea. It’s not the EU itself issuing bonds to get credit for common EU projects.
There is a difference as countries have different ( like AAAA of A-) loan ratings. Also the ETF now is probably a mix of country baskets with several ratings, banks and end timesa and prices.
When Eurobonds are issued, the EU will use the highest European status and thus loan money for less interest. And basically be of highest quality and reliability. This will cut costs and be more effective to get public/private money for things like common energy hubs, telecom, infrastructure and defence.
That… Isn’t that shady??
Like, 2007 crash levels of shady??
Tricks were also pulled before that crash to increase the ratings of investments and that led to investor hell.
Wouldn’t it be reasonable to use the average rating instead? Though calculating it would be a bit complex I bet.
unlike 2007 they have colatoral & garantuee.