Detail Rushing For the Exits; Europe's Debt Crisis   Oleh:  [s.n] Jenis: Article from Bulletin/Magazine Dalam koleksi: The Economist (http://search.proquest.com/) vol. 401 no. 8759 (Nov. 2011), page 29. Topik: Bond Markets; Manycountries; Sovereign Debt; Economic Crisis Ketersediaan Perpustakaan Pusat (Semanggi) Nomor Panggil: EE29.69 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada     Lihat Detail Induk Isi artikel In financial markets, it is better to avert panic than to try to pacify it. On Italy's bond market, the world's third-largest, where yields had been rising for weeks, fear turned to panic early on November 9th. Within minutes of the market opening there was a fully fledged run on Italian government bonds. Buyers were hard to find, and in thin markets yields on the bonds jumped past 7% before stabilising just below 7.5% on what traders assumed was buying by the European Central Bank. The increase on Italian debt came sooner than expected, as it was triggered before Italian bonds crossed a threshold that the clearing house was thought to use (4.5 percentage points above the average interest rate of AAA-rated government bonds in the euro zone). And the margin increase is unlikely to be reversed, even if ECB buying drives yields back. The triggering of margin calls has changed investors' perceptions of Italian government bonds and will worsen the government's funding position. The immediate risk is that banks which might have held Italian bonds as part of their liquidity reserves or the building blocks of other financial products are dumping them for safer bets, such as German Bunds. Worrying, too, are signs that companies across Europe are preparing for the possibility of a break-up of the euro zone. Opini Anda Klik untuk menuliskan opini Anda tentang koleksi ini! Kembali

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