Bondholder losses may be eased

Germany is prepared to soften language in the Eurozone's permanent bailout mechanism compelling bondholders to accept losses in exchange for much stricter budget rules, sources have said. The shift would not completely remove the possibility of private bondholders having to accept losses in the future, but it would align the statutes of the European Stability Mechanism more closely with IMF rules, creating a more-level playing field for private buyers of Eurozone sovereign debt.