There will be “improved resilience” in Europe and a reduction in the risk premiums of peripheral countries, according to Deutsche Bank's fixed income research analysts in their outlook for 2013, although they caution that "event risk" has not disappeared.

In their outlook for 2013, the analysts cited an improved ability to deal with shocks. They said: "The benign outlook is not because event risk has disappeared, but rather because of an expected greater resilience to adverse developments thanks to the reduced reliance on non-domestic private investors, the backstop offered by the OMT [the European Central Bank's Outright Monetary Transactions permitting it to intervene in the government bond market] and the political landscape in core countries which (as evidenced by the Greek deal) should remain supportive."