Daofu: Some European countries may face mid-term debt sustainability risks.

Doratu Investment Management stated in a outlook report that the high and rising debt levels in countries like France and Belgium are increasing the mid-term debt sustainability risks. The company mentioned that the factors contributing to these risks are changing slowly and deeply rooted in the economic and political structure. They also stated that these factors have predictive value for long-term rating trends and provide opportunities for generating alpha returns. Doratu Investment Management also pointed out that the retirement fund reform in the Netherlands could lead to significant changes in asset allocation, creating risks and opportunities.