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

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