Will Italy Be Saved by the ECB?
The Italian election at the end of May has shaken up Europe and the Italian bond market. The change in Italy will make things more volatile over the next several months. We believe that the ECB will keep Italy afloat with purchases of Italian Government bonds. When Mario Draghi steps down late next year. It is likely a German will take the helm of the ECB next year and Europe will fall back into financial crisis mode.