ING warns of ‘dramatic divergence’ in interest rates if euro fails

The Hague-based ING has warned that in the event that the European Monetary union (EMU) is dissolved, European sovereign bond yields would dramatically diverge between less than 1% for Germany and 7–12% in distressed southern European countries, while corporate bond spreads would widen by 300 basis points, with huge implications for multinational insurers.

The stark scenario comes in a report, EMU Breakup: Quantifying the Unthinkable, by the Dutch firm outlining the implications of the failure

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

Asia Risk 15: Jack Lin, Janus Capital

The development of mainland Chinese markets may mimic what has already occurred in Taiwan, according to Jack Lin, co-chief executive officer of Janus Capital International in Hong Kong, but the role of sovereign funds and the quantum of scale indicate…

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here