Le blog du CEPII
Francesco Molteni

In search of a liquid asset for European financial markets

Money & Finance | Europe 
PostJuly 15, 2016
By Francesco Molteni
European financial markets face a shortage of liquid assets. New regulations increase banks’ demand for liquid securities, mainly sovereign bonds, but the European fiscal rules constrain the supply of public debt. Further, the QE is draining bonds from the market. Some proposed forms of “Eurobonds” or new debt securities issued by European supranational organizations could solve this problem.