Aussie slides as investors flock to safe-havens, yen strenghtens. The Australian dollar tumbled on Tuesday, while the safe-haven Swiss franc and Japanese yen strengthened as renewed signs of strains in U.S.-China trade relations dented risk sentiment and left investors ducking for cover. Trade and tariffs have been the main focus since dramatic market moves on […]
How can the euro area’s return to fiscal sustainability be organised in view of soaring debt levels and the sovereign debt crisis? How can debts be financed efficiently, not least to prevent debt crises in weaker countries where high debt levels compounded by a hike in risk premiums on government bonds can create a debt […]
Safe assets are financial instruments that maintain a stable value even after adverse macroeconomic shocks. This column explores how banks supply safe assets through securitisation and evaluates the consequences for financial stability. As safe assets become scarcer, banks increasingly rely on securitisation to produce safe assets, relaxing screening standards in the process. This lowers loan […]
