European Markets Watchdog Warns Government Bonds Not a Risk-Free Investment

A report from the European Systemic Risk Board, which ECB President Mario Draghi chairs, noted that government bond holdings by banks in fragile euro countries have risen over the past six years.
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FRANKFURT—A financial markets watchdog group headed by European Central Bank President Mario Draghi said Tuesday that the risk-free treatment of government bonds in some regulations may lead to excessive investment in these types of securities.
A report from the European Systemic Risk Board, which Mr. Draghi chairs, noted that “for decades, the regulatory treatment of sovereign debt has significantly discounted and, in many cases, ignored the possibility of Read More

Source:: wsj