European Banks' Debt Buying Raising Risk

09 Apr 2012

European banks, particularly those in Spain and Italy, have been buying a record amount of debt in recent months after borrowing heavily from the European Central Bank.

European banks, particularly those in Spain and Italy, have been buying a record amount of debt in recent months after borrowing heavily from the European Central Bank. The debt purchases have lowered national borrowing costs, but analysts worry now that the connection between bank risk and sovereign risk ...

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