Investors keeping an eye out for opportunities in the still-troubled European market have been warned to take a long-term view of the potential dangers of those nations' pension obligations – as they present a financial time-bomb not unlike costs in the U.S.

A recent study by the EDHEC-Risk Institute has suggested that investors take better account of the overall pension liabilities on the books when examining the solvability of European nations and considering plans for moving money into those markets.

As the study suggests, more than just the pension systems and their retirees themselves, the systemic issues related to the public finances of the countries involved and the principal-related risks need to be considered when more strategic investments are contemplated.

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