Newton's Stewart warns on eurozone 'debt dominoes'

clock

Newton income manager Iain Stewart has warned the problems in Greece are just the tip of the iceberg of a ‘monetary distortion' across the developed world and could trigger 'debt dominoes' throughout Europe.

The manager of the £4bn Real Return fund said both peripheral and core Western countries have built up their debt on these distortions and cheap money, which have led to a mispricing of risk for both borrowers and lenders. "Under more ‘normal' circumstances, the debt of a relatively small economy like Greece could be restructured and written down, allowing us all to move on. "The reason why we do not seem to be able to do this is the clear risk of contagion to other ‘debt dominoes' in the eurozone and beyond," he said. "Clearly, the Greek sovereign bond market, much like the US sub...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Europe

MainStreet Partners' Daniele Cat Berro: Europe's good intentions and poor execution

MainStreet Partners' Daniele Cat Berro: Europe's good intentions and poor execution

'Chronic slowness' undermining efforts

Daniele Cat Berro
clock 03 July 2025 • 4 min read
Eurozone inflation rises to 2% in June

Eurozone inflation rises to 2% in June

Up from 1.9% in May

Sorin Dojan
clock 01 July 2025 • 2 min read
Disinflation drives ECB rate cut but investors warn of limited space for further trims

Disinflation drives ECB rate cut but investors warn of limited space for further trims

25bps cut

Sorin Dojan
clock 05 June 2025 • 2 min read
Trustpilot