Sovereign bond-backed securities could improve eurozone stability – ESRB
Regulations would need to change and treatment of sovereign bonds would be vital, argues Central Bank of Ireland Governor
Creating a new asset class of sovereign bond-backed securities could improve the financial stability of the eurozone, according to a report by a task force working for the European Systemic Risk Board.
The report also says the securities, called SBBS, would need to be carefully designed, and would entail a number of significant regulatory changes. Central Bank of Ireland governor Philip Lane, who chaired the task force, says eurozone regulators would have to pass “an SBBS-specific enabling
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