- Markus Demary / Jürgen Matthes ·
- IW News ·
- 30 January 2018
New Euro area safe bonds: High risks for the ECB
An EU working group presented yesterday a feasibility study for sovereign bond-backed securities. These bonds are designed to reduce the vulnerability of the European banking sector to sovereign debt crises. The problem, however: Should there be any disruptions in the markets for these securities in the event of a crisis, the European Central Bank (ECB) would have to step in.