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
- Brexit novations ‘on hold’ to gain reg relief
- Banks hope final FRTB rules will ease NMRF burden
- People moves: Bank of America names new Apac chiefs, Wilkinson leaves LGIM, Lloyds loses Coutte, and more
- Functional programming reaches for stardom in finance
- Mifid data publishers drag feet on Esma guidelines