Thus, the above-mentioned bias has a strong influence on the composition of international bond portfolios of euro member countries The recent (2010 to date) European sovereign debt crisis, which...

Thus, the above-mentioned bias has a strong influence on the composition of international bond portfolios of euro member countries The recent (2010 to date) European sovereign debt crisis, which resulted in several European nations’ debt downgrades, prompted bond investors to rethink credit risk and adjust their bond portfolio strategies (allocations).