What is the liquidity risk in using an Eonia liabilities discounting curve?

liquidity

"It's a bit like the chicken and egg story. Will the liquidity in the Euro OverNight Index Average (Eonia) space start flowing as soon as policy makers in Europe ask pension funds and insurers to use Eonia to discount their liabilities? Or will regulators adopt Eonia for liabilities discounting as soon as liquidity will flow better along the Eonia curve?", wonders one London-based head of Nordic solutions at a global investment bank. Since a handful of pension funds and insurers has shifted its

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 [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

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: