Italy Has World’s 10th Biggest Economy, But the THIRD Largest Bond Market

Italy’s Economy Is the World’s 10th Largest … But It’s Bond Market is the World’s 3rd Biggest

Italy has the world’s 10th biggest economy.

And as the World Federation of Exchanges (via The City UK) notes, France has a larger domestic bond market than Italy:

But Italy has the third largest bond market in the international markets, behind only the U.S. and Japan. As the Wall Street Journal notes:

At roughly €1.6 trillion ($2.3 trillion) Italy’s bond market is the third largest in the world behind the U.S. and Japan. Over the past year Italian bonds have become widely owned by managers who have shunned the bonds of Greece, Portugal and Ireland. Many felt that Italy was walled off from the problems of the other peripheral countries.

The Fiscal Times reports:

The Italian bond market is enormous. Italy carries $2.6 trillion dollars in debt, the third-largest market after the United States and Japan. But Italian gross domestic product is only $2 trillion, compared with a GDP of $15 trillion in the United States and $5.4 trillion in Japan. Italy can’t continue to service this debt without assistance, and the European Union doesn’t have the money or political will to bail out Italy.

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