DMOs to Basel Committee: leave our bonds out of your buffers


Plans for banks to hold government bonds as a buffer against a liquidity squeeze are under fire from an unexpected quarter - the debt offices that issue those securities. The new rules being drawn up by the Basel Committee on Banking Supervision would create extra, guaranteed demand for a vast amount of government debt - possibly north of $1 trillion, according to some estimates - and could therefore enable governments to borrow more cheaply or to run larger deficits. Debt managers see that as a

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: