Why M&G;'s Eric Lonergan Believes We’re at the Start of Euro Crisis Part II

There’s a lot going on right now, to say the least. There is an ongoing war in Europe. There is an ongoing pandemic. Risk assets are tumbling. Inflation has yet to show signs of meaningfully slowing down. And central banks are trying to tame the inflation, without sacrificing the recovery. And on top of all this, sovereign stress is showing up in Europe again, as seen with the widening spread between Italian and German bonds.

Eric Lonergan, a Portfolio Manager at M&G, said recently on Twitter that we’re witnessing the start of the second euro crisis. So to learn more, we did a chat over Bloomberg’s instant messaging tool, about the source of his concern and the growing risk premium being placed on European peripheral debt.