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20111228 Bloomberg Businessweek

Bloomberg Businessweek, December 12-18, 2011 
Page 58
European Crisis
When Sovereign Debt Is No Longer Safe

...The deterioration of European sovereign debt is also leading some regulators to question Basel rules that say banks don't need to hold any capital against potential losses on government bonds. Regulators should distinguish between the sovereign debt of countries that have control over their own monetary policy and "subsidiary" sovereign bonds issued by countries in the euro zone, Adair Turner, chairman of the U.K.'s Financial Services Authority, said in a Nov. 21 speech at the Center for Financial Studies in Frankfurt.

   As the European crisis drags on, even governments once considered safe are struggling to attract investors. Germany was unable to sell about 35 percent of the Euro-d$ 6 billion of 10-year bonds it offered on Nov. 23. Meanwhile, the turmoil in Europe has boosted demand for government bonds of countries outside the euro-zone, pushing yields lower. Ten-year U.S. Treasuries yielded about 2.1 percent on Dec. 6 compared with...

DB, SSN057-86-4042,
December 28, 2011, Wednesday,
National Central Library,
Taipei City