Dutch Bonds: A Compelling Safe Asset Alternative

UBS recommends Dutch government and agency bonds as a compelling 'safe' asset alternative to German Bunds for Eurozone investors. The Netherlands' stable credit profile and AAA rating provide a hedge against German fiscal spending risks.

Key Takeaways

• 1.Investors concerned about Germany's long-term economic and fiscal prospects should consider diversifying into AAA-rated Dutch government and agency bonds.
• 2.The Netherlands maintains a strong fiscal profile with a low and stable debt ratio, making it a viable 'safe' asset alternative in the Eurozone.
• 3.Dutch agency bonds from BNG Bank, NWB, and FMO offer high-grade investment opportunities across major currencies, benefiting from strong government support.

Table of Contents

• Dutch bonds: A compelling "safe" asset alternative
• Risks to our outlook
• BNG Bank
• NWB
• FMO
• Required disclosures
• 3-year Issuer rating history change
• UBS CIO risk views
• Risk Information

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