Banks are shorting the euro, along with German and French government bonds, as a hedge against this kind of escalation. Their fear is that a Greek restructuring is inevitable and will scare investors away from other vulnerable members of the eurozone. One obvious consequence would be a weakening of the single currency, but banks have entertained a variety of other, wilder scenarios as they seek to immunise their books against a possible Europe-wide crisis.
"We've run a complete stress scenario f
The week on Risk.net, October 6-12, 2017Receive this by email