EU Covid policies resurrect sovereign doom loop fears

Italian banks could see holdings of home country debt increase to 17% of their total assets

Eurozone banks’ holdings of sovereign bonds issued by their home governments could increase by half over the next two years, as states sell increasing amounts of debt to recover from the coronavirus crisis. This will bind banks and sovereigns closer together, perhaps giving rise to a new iteration of the so-called ‘doom loop’ – the corrosive relationship in which government bond-laden lenders weigh on the creditworthiness of their host countries, imperiling the survival of both.

Data gathered

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 or view our subscription options here:

You are currently unable to copy this content. Please contact 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 View our subscription options

You need to sign in to use this feature. If you don’t have a 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